Synthetic Instruments | IFCM

Synthetic Instruments

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 allows

The creation of 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 the trader's imagination.

You can create synthetic instruments on your own by reading the quick guide for creating synthetic instruments.

Open a risk-free demo account now, download and try the unique PQM module in practice

Synthetic instruments created by the Portfolio Quotation method are used for

Financial markets analysis
Exploring complex interrelations between assets and their combinations on historical charts
Moreover, traders get an opportunity to trade their own created instruments
Creation and trading of such synthetic instruments is implemented on the NetTradeX PC platform with the working title Personal Composite Instruments (PCI).
PCI Creation and Trading
Download Terminal

Trading Advantages of Synthetic Instruments

  • Add base and quoted assets in the synthetic instrument, which will result in opening both long and short positions, while making deals.
  • 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.
  • 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.
  • Get the historical prices of the created synthetic instrument.
  • Simple and user-friendly interface for creating synthetic instruments.
  • Maintain the database of the created synthetic instrument.

Use synthetic instruments created by our analysts

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

XAU
Brent
DJI
EUR
HIGH-TECH INDEX
RUB
JPY

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 Instrumentsv

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

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