Is the transaction in which different foreign exchange and currencies are bought, sold, and exchanged at the exchange rates fixed today for a future date. In general, firms engaged in foreign trade use to eliminate the risk of rate of exchange.
For instance, firms engaged in imports carry out forward transactions to buy foreign exchange. In this way, they have taken measures against the fluctuations in the rate of exchange for foreign exchange payments they would make at a future date.
A swap, which is used to mean the exchange of assets, is a product used in general for protection against the changes in interest and rates of exchange.
In FX swaps, principals are exchanged while in interest swaps only interest payments change hands.
An options contract is an agreement that gives the purchaser of the option the right to buy an economic or financial indicator, a capital market instrument, commodity, precious metal or foreign exchange at a predetermined price and in an amount and quality at a specific time or up to a certain time and obligates the party that sells the option to sell the same.
CALL option (The right to buy)
If used, it gives the buyer of the option the right to purchase the financial asset covered by the contract. The obligates the option seller to sell the same financial asset.
PUT option (The right to sell)
If used, it gives the buyer of the option the right to sell the financial asset. It imposes on the option seller the obligation to buy the same financial asset.
The following table shows the types of over-the-counter derivative transactions and the assets underlying the transactions that are conducted by our Bank within the scope of the "Communiqué no. III-37.1 on the Principles Regarding Investment Services and Activities and Ancillary Services" by the Capital Markets Board.
|TYPE OF TRANSACTION||#||UNDERLYING ASSET COVERED BY THE TRANSACTION|
|SWAP||1||Currency Swap ( EURO/USD, British Pound/USD, Swiss Franc /USD, Japanese Yen/USD, TRY/EURO, TRY/USD, TRY/ British Pound, TRY/AZN,TRY/AED, Others)|
|FORWARD||2||Currency forward (EURO/USD, British Pound/USD, Swiss Franc /USD, Japanese Yen/USD, TRY/EURO, TRY/USD, TRY/ British Pound, TRY/AZN, TRY/AED, Others)|
|OTHER DERIVATIVE TRANSACTIONS||3||Other Futures Trading (Securities, Other)|
Currency Buy-Sell Option (USD/TRY, EUR/TRY, EUR/USD)