Hedging

Forward is a contractual transaction which provides protection against currency risk by establishing in advance the term, price and amount of an asset which is subject to delivery in the future.

The parties of the contract are the exporter and importer. The agreement date, amount, price, exchange and term of the contract are determined by the parties. Predetermining the exchange rate protects your business from exchange rate fluctuations.

Options are contracts which give the option owner the right to buy or sell the underlying asset at a specific price in exchange for a premium amount and, if requested by the buyer, obligate the option seller to buy or sell the asset.

Options are generally preferred by investors who want premium yields. Option purchase is recommended for investors who want risk protection and earning on their assets in the future.

Yields are subject to 10% withholding for real persons.

FX and Parity Transaction is a risk protection which offers an opportunity to derive profits from upward and downward market movements.

Orders can be placed for USD/TRY and FX/FX transactions

Swap is a transaction in which foreign exchange, interest rate or securities or their cash flows are exchanged at the end of a specified term.

FX Swap is a contract through which one currency is exchanged for another currency to repay the principal amount exchanged on an agreed future date. In foreign exchange swap transactions, the amounts exchanged at the beginning of the transaction are repaid on the expiry date and at the rate stated in the contract.

Interest Rate Swap is a transaction which provides protection against potential interest rate fluctuations and yield earnings from these interest rate changes.

A maturity date is determined for Interest Rate Swap. The principal amount is exchanged on the determined expiry date.

Cross-Currency Swap is the combination of Interest Rate Swap and Foreign Exchange Swap transactions

The main purpose of Cross-Currency Swap is to ensure protection against both currency risk and interest rate risk. In this transaction, the customers do not have the right to convert their assets. Both principal and accrued interest can be swapped.