Synthetic instrument is a key component of the Portfolio Quoting Method (PQM), where the value of the base asset (portfolio) is expressed in the value of the quoted asset (portfolio).
This unique technology gives an opportunity to create such synthetic instruments as new cross rates, correlations between various assets, currency indexes, stock portfolios, portfolios for pair trading and many more.
The variety of such instruments is limited only by trader's imagination. You can create synthetic instruments on your own by reading the quick guide for creating synthetic instruments.
Synthetic instruments, created by Portfolio Quoting Method, are used for analyzing financial markets, studying complex interrelations between assets and their combinations on historical charts. Moreover, traders instantaneously get an opportunity to trade their own created instruments.
The creation and trading of such synthetic instruments is realized on the NetTradeX PC platform with the working name Personal Composite Instruments (PCI). «Personal» - a trader creates his own instruments in his account. «Composite» - a synthetic instrument created from various assets.
Trading Advantages of Synthetic Instruments
- Create instruments in form of portfolios with various degrees of complexity, from very simple, including only two assets, to complex combinations, consisting of dozens of assets.
- Give each component (asset) an individual weight in units of the asset volume – in the U.S. dollars, in percents of the total portfolio volume (base or quoted); the U.S. dollar, as an asset, can be added both to the base and quoted portfolios.
- Add base and quoted assets in the synthetic instrument, which will result in opening both long and short positions, while making deals.
- Maintain the database of the created synthetic instrument.
- Simple and user-friendly interface for creating synthetic instruments.
- Get the historical prices of the created synthetic instrument.
Each user of trading-analytical terminal NetTradeX gets access to a unique technology, providing an opportunity to create unique Personal Composite Instruments (PCI).
Use synthetic instruments created by our analysts
Additionally, you can use the synthetic instruments created by our professional analysts; these synthetic instruments can be easily found in Synthetic Instruments Library.
To use synthetic instruments from the library, trader needs only to download the instruments from the library to the trading terminal and start trading them.
Nevertheless, PCI Library contains only examples of personal composite instruments which can be created with the new technology. The main advantage of the new technology is that you may create any instruments on your choice, analyze and trade them in NetTradeX trading terminal.
Quick Guide for Creating and Trading Synthetic Instruments
Synthetic Instruments (in the terminal - Personal Composite Instruments(PCI)), created through the Portfolio Quoting Method (PQM), are realized on trading-analytical platform NetTradeX PC and are considered an efficient tool for financial analysts, managers of mutual and investment funds and traders.
Creation of Synthetic Instruments
In order to create a new synthetic instruments by Portfolio Quoting Method (PQM), right-click on "Market watch" window and select "Create PCI" option from the drop-down menu. More
Working with Charts of Synthetic Instruments
Through trading-analytical platform NetTradeX you can get deep price history of any of your personal composite instruments, which will be updated in real time mode. Price history can be presented in the form of different chart types (bars, candlesticks and lines) at various time frames. To open a chart of price history of the created instrument, you should: More
Edition of Synthetic Instruments
To add the synthetic instrument of interest to the list of instruments used, you may open the context menu in "Market watch" window or click on "Trade -> Add instruments to use..." in the menu bar. More
Synthetic Instruments Trading
Through synthetic instrument creation module you will be able not only to create new instruments and open charts for full-scale technical analysis, but also to trade the instruments, created by yourself. More
Synthetic Instruments Trading Features
After creating and placing a synthetic instrument in the “Market watch” window, it may be traded as a common instrument, set pending and linked orders Take Profit and Stop Loss. More