About TurkDEX

Turkish Derivatives Exchange (TurkDEX):

The Turkish Derivatives Exchange (TurkDEX) is where futures and options contracts are traded in Turkey. Such contracts are also referred to as "derivative products" or simply "derivatives". TurkDEX is based in İzmir and trading began there in February 2005.

Futures and options contracts:

Futures and options contracts are agreements that parties enter now to buy/sell something (commodities, financial instruments, etc) at a specified price and on a specified date in the future. A standard feature of such contracts is that the nature and quantity of the assets on which they are based as well as the conditions under which the assets will change hands must all be spelled out exactly and in advance.

Futures and options markets differ from spot markets in that trading on spot markets actually takes place in the present even though the contractual obligations of the trade may be fulfilled at some other time.

Features of futures and options contracts

• Futures and options contracts are normally traded on organized markets. (In Turkey this market is called TurkDEX-Turkish Derivatives Exchange.) Trading in these contracts is guaranteed by an agency of the market and investors who wish to engage in trading are required to put up margins (collateral) to cover their positions (dealings) in each contract.
• Trading in a futures and options contract ceases when the contract matures (expires). While an investor may effectively close his position before maturity (expiry) by taking a "reverse position", the deals do not have to be finalized until the maturity date.
• Profits and losses are calculated on a daily basis and booked to the appropriate accounts.
• Through "leveraging", an investor is able to trade without having to invest the full amount of a contract simply by putting up the initial margin that is required for it.

Advantages of TurkDEX trading

• Leveraging: Through "leveraging", an investor is able to take larger trading positions without having to invest the full amount of a contract, simply by putting up the initial margin that is required for it. Typically about one-tenth of a contract's value needs to be put up as an initial margin in order to secure the gains (or suffer the losses) on that contract.
• Short sales: Investors on TurkDEX can make "short sales" (selling securities, commodities, etc that they don't yet actually own).
• Tax advantages: Gains secured on trading in TurkDEX contracts have been subject to a zero rate of withholding since 1 March 2007. This rule is currently set to remain in effect for index contracts.
• Portfolio diversity: Derivatives trading is especially useful to those who are interested in diversifying their portfolios and spreading out their risks by investing in alternative investment vehicles.
• Hedging: Derivatives trading allows manufacturers, importers, exporters, and investors as well as all real-sector actors to protect themselves against their exposure to interest rate, exchange rate, and price movement risks.
• Earn interest on margins: TL cash margins accrue interest at a rate specified by Takasbank. (No interest accrues on any other type of margin.)

TurkDEX-traded contracts and trading calendar:

Index, currency, interest rate, and commodity contracts are being traded at this time.

	Contracts	Sizes of contracts	Min. Price
Index	İMKB-30 Index	(IMKB-30 Index value/TL 10)	0,025 (25 Index point)
	İMKB-100 Index	(IMKB-100 Index value/ RY10)	0,025 (25 index point)
Currency	USD Dolar / TL	1,000 $	0,0005 (in the value of TL 0,5)
	EURO / TL	1,000 EUR	0,0005 (in the value of TL 0,5)
Interest Rates	Indicator DİBS	TL 10,000  (nominal)	0,01 (in the value of TL 1 TL )
Commodity Contracts	Agean Standard 1 Cotton	1,000 KG	0,005 (in the value of TL 5)
	Anatolian Red  Crusty Wheat	5,000 KG	0,005 (in the value of TL)
	Gold (bullion)	100 gr.	0,005 (in the value of TL 0,5)

Trading calendar

Non-commodity contracts mature in the months of February, April, June, August, October, and December.

Commodity contracts mature in the months of March, May, June, October, and December.

At any given time, one may trade in contracts whose maturities fall within the three trading calendar months closest to the current one. In the case of foreign currency contracts, if one of those months is not December, then that month is automatically added to the calendar as well.

TurkDEX trading through GarantiBank

There are two ways to trade on TurkDEX through GarantiBank.

• GarantiBank Investment Centers: Your branch can put you in touch with a GarantiBank investment center or you may contact a center or trading room yourself. Click here for a list of GarantiBank Investment Centers.
• Garanti Online Banking: Click here for information about TurkDEX trading on the Garanti Online Branch.