Synthetic forward position

Synthetic forward position

A forward position constructed through borrowing in one currency, lending in another currency, and offsetting these transactions in the spot exchange market.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Synthetic Forward Position

A position in which one borrows funds in one currency and lends the same amount in another currency. One then offsets these positions by making trades on the currencies.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved