A forward contract to buy or sell a particular asset at a pre-agreed price at a date in the future allows the client to manage the currency risk that may arise from future exchange rate increases or decreases. The forward contract provides protection but binds both parties as the transaction cannot be canceled and must be liquidated on the expiry date regardless of the market price. One of the most frequently used products in currency risk management, Forward is a derivative product suitable for companies that do not want to carry or export currency risk to their balance sheets.
An option is a contract that transfers the right to buy or sell a specified amount of an asset at a specified price until a specified date in the future. Unlike futures contracts, it is not clear whether a transaction will take place on the expiry date, depending on the market price today. The options listed in the exchange rate are options that give you the right to buy (call) or sell (put) the currency at the specified rate. Options contracts give the buyer the right to buy and sell, and the buyer uses this right when it is beneficial. On the other hand, the option seller must fulfill its purchase or sale obligation if the buyer of the option exercises its rights. The main factors affecting the option prices are the spot price of the underlying asset, the strike price, the expiry date, the volatility of the underlying asset and the risk-free interest rate. In the option contract, the buyer's risk is limited to the premium paid, the seller's liability is unlimited. The option seller bears the principal risk.An option is a contract that transfers the right to buy or sell a specified amount of an asset at a specified price until a specified date in the future. Unlike futures contracts, it is not clear whether a transaction will take place on the expiry date, depending on the market price today. The options listed in the exchange rate are options that give you the right to buy (call) or sell (put) the currency at the specified rate. Options contracts give the buyer the right to buy and sell, and the buyer uses this right when it is beneficial. On the other hand, the option seller must fulfill its purchase or sale obligation if the buyer of the option exercises its rights. The main factors affecting the option prices are the spot price of the underlying asset, the strike price, the expiry date, the volatility of the underlying asset and the risk-free interest rate. In the option contract, the buyer's risk is limited to the premium paid, the seller's liability is unlimited. The option seller bears the principal risk.
A currency swap, which involves the exchange of cash flows from different currencies, is a type of contract in which two currencies are exchanged for a specified period at fixed exchange rates at the value date and maturity date. There is no currency risk in currency swap transactions, only interest rate risk. It is used to reduce the cost of borrowing and to regulate cash flow without incurring currency risk.
Interest rate swaps provide effective risk management, allowing you to convert the interest structure of the debt in the same currency from floating to fixed or from fixed to floating in nominal amount. In interest rate swaps, the interest amount is exchanged, not the principal, in the relevant periods.
Cross currency swaps use a combination of currency swap and interest rate swap to provide effective risk management by exchanging different currencies and different interest rate structures (fixed or floating) between parties.
You may perform foreign exchange transactions at our bank at competitive rates, by directly communicating with our specialized staff in the treasury marketing unit.
Sale of a fixed income security with the commitment to repurchase at the end of a certain period. It is a short-term investment tool for the investors looking for liquidity.
Treasury Bills with maturities of less than 1 year and Government Bonds with a maturity of more than 1 year are government domestic debt securities issued by the Treasury of the Republic of Türkiye. The face value written on the securities is taken at maturity and whose return is already known, except for floating coupon bonds. The bonds can be sold before their maturity depending on market conditions.
A corporate bond is a bond issued by a corporation.
A Eurobond is a bond issued offshore by governments or corporates denominated in a currency other than that of the issuer's country.