> For the complete documentation index, see [llms.txt](https://docs.openalgo.in/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.openalgo.in/api-documentation/v1/data-api/syntheticfuture.md).

# SyntheticFuture

Calculate the synthetic futures price using ATM options (Put-Call Parity).

## Endpoint URL

```http
Local Host   :  POST http://127.0.0.1:5000/api/v1/syntheticfuture
Ngrok Domain :  POST https://<your-ngrok-domain>.ngrok-free.app/api/v1/syntheticfuture
Custom Domain:  POST https://<your-custom-domain>/api/v1/syntheticfuture
```

## Sample API Request

```json
{
  "apikey": "<your_app_apikey>",
  "underlying": "NIFTY",
  "exchange": "NSE_INDEX",
  "expiry_date": "25NOV25"
}
```

## Sample cURL Request

```bash
curl -X POST http://127.0.0.1:5000/api/v1/syntheticfuture \
  -H 'Content-Type: application/json' \
  -d '{
  "apikey": "<your_app_apikey>",
  "underlying": "NIFTY",
  "exchange": "NSE_INDEX",
  "expiry_date": "25NOV25"
}'
```

## Sample API Response

```json
{
  "status": "success",
  "underlying": "NIFTY",
  "underlying_ltp": 25910.05,
  "expiry": "25NOV25",
  "atm_strike": 25900.0,
  "synthetic_future_price": 25980.05
}
```

## Request Body

| Parameter    | Description                                  | Mandatory/Optional | Default Value |
| ------------ | -------------------------------------------- | ------------------ | ------------- |
| apikey       | Your OpenAlgo API key                        | Mandatory          | -             |
| underlying   | Underlying symbol (NIFTY, BANKNIFTY, SENSEX) | Mandatory          | -             |
| exchange     | Exchange: NSE\_INDEX, BSE\_INDEX             | Mandatory          | -             |
| expiry\_date | Expiry date in DDMMMYY format                | Mandatory          | -             |

## Response Fields

| Field                    | Type   | Description                        |
| ------------------------ | ------ | ---------------------------------- |
| status                   | string | "success" or "error"               |
| underlying               | string | Underlying symbol                  |
| underlying\_ltp          | number | Current spot price                 |
| expiry                   | string | Expiry date                        |
| atm\_strike              | number | ATM strike used for calculation    |
| synthetic\_future\_price | number | Calculated synthetic futures price |

## Formula

```
Synthetic Future Price = Strike Price + Call Premium - Put Premium
```

Where:

* Strike Price = ATM strike
* Call Premium = LTP of ATM Call
* Put Premium = LTP of ATM Put

## Understanding Synthetic Futures

### What is Basis?

```
Basis = Synthetic Future Price - Spot Price
```

| Basis          | Interpretation                  |
| -------------- | ------------------------------- |
| Positive       | Cost of carry (normal market)   |
| Large positive | High demand for futures/options |
| Negative       | Backwardation (rare)            |

### Example Calculation

```
Spot Price (underlying_ltp): 25910.05
ATM Strike: 25900
ATM Call Premium: 500
ATM Put Premium: 420

Synthetic Future = 25900 + 500 - 420 = 25980
Basis = 25980 - 25910.05 = 69.95 points
```

## Notes

* Synthetic futures provide a **fair value reference** for actual futures
* Useful for **arbitrage detection** between futures and options
* The **basis** indicates the cost of carry
* Near expiry, synthetic future converges to spot price

## Use Cases

* **Arbitrage strategies**: Compare with actual futures price
* **Fair value calculation**: Determine if futures are overpriced/underpriced
* **Options pricing**: Use as underlying for options Greeks calculation

***

**Back to**: [API Documentation](/api-documentation/v1.md)