What is Turkdex?
Turkdex is the initial and sole Derivatives Exchange of Turkey. Turkdex was launched on February 4, 2005 in Izmir in order for the trading of futures and options contracts in Turkey upon receipt of the required legal permits from the Capital Markets Board.
Features
A Futures Contract is an agreement which obliges the purchase or sale of a commodity of certain quantity and quality at a certain term.
Turkdex is a platform where price forecasts are formed every day and moment, and these forecasts are continuously followed up.
Turkdex offers instruments through which risks formed at spot market, leadingly exchange rate risk, can be managed.
Turkdex enables short sale opportunity to investors.
Speculative, protection or arbitrage transactions are realized at Turkdex.
Protection transactions enable the removal or the minimization of negative outcomes to be borne by potential risks.
Stocks index, foreign exchange, interest, cotton, wheat and gold contracts are traded at Turkdex.
Trading Hours: 09:15 - 17:35: Normal Session - 17:45: Announcement of Daily Settlement Prices and Publishing of Margin Calls.
Definitions
Open Position
Short or long position taken by investors and which has not been closed yet at the Futures Market.
Long Position
The position taken via purchasing contracts in the expectation that the prices will rise in the Futures Market.
Short Position
The position taken via selling contracts in the expectation that the prices will fall in the Futures Market.
Spreading Position
The position taken by holding a long position at one term and a short position at a different term of the same contract. Spreading Margin is half of the Initial Margin for each contract.
Closing Positions
A position is taken by the first long or short transaction realized in a contract. If the taken position is Long, it is closed by a Short Position, and if the taken position is Short, it is closed by a Long Position in the same contract or the expiration date is awaited.
Settlement Price
The price which is set during the session for the pursuit of the risk on contract basis and which is used in the calculation of daily profit/loss and margin obligations on account basis.
End of Day Settlement Price
The price, the calculation form and method of which is stated in the relevant Exchange Rules and Derivatives and which is determined by the Exchange for using in the updating of accounts at the end of the day.
Expiration Date Settlement Price
The price, the calculation form and method of which is stated in the relevant Exchange Rules and Derivatives and which is determined by the Exchange for using in the execution of positions at the expiration date.
Initial Margin
The amount which has to be deposited at the ISE Settlement and Custody Bank in order to take a Long or Short Position in a Futures Contract.
Maintenance Margin
The minimum level to which the Initial Margin can fall due to the formed losses. The current determined rate is 75% of the Initial Margin.
Margin Call: If the end of day balance of the investor stays below the Maintenance Margin, its completion up to the Initial Margin is requested. The margin has to be drawn up to the Initial Margin level until 14.30 the next day or Default will occur. The account positions which are at default will be ex officio closed by the bank.
Physical Delivery: The obligation of Short Position owners to deliver the underlying asset and the obligation of Long Position Owners to accept the delivery of the underlying asset and to make the required payments at the expiration date within the framework of the principles set forth in the contract for positions which remain open as of the end of the session on the last trading day.
Currency Agreement: Contracts traded in terms of foreign exchange.
Initial and Maintenance Margins
| Type of Contract |
Initial Margin (TL) |
Maintenance Margin (TL) |
| ISE 30-100 Index Spread |
250 |
187,50 |
| ISE 100 |
700 |
525 |
| ISE 30 |
900 |
675 |
| ISE 30 |
140 |
105 |
| Euro/TL |
180 |
135 |
| PHYSICAL DELIVERY USD/TL |
14,000 |
10,500 |
| PHYSICAL DELICERY Euro/TL |
18,000 |
13,500 |
| EUR/USD Cross Currency |
120 |
90 |
| USD/Ounce Gold |
140 |
105 |
| T-Benchmark |
300 |
225 |
| Cotton (EGEST-1) |
240 |
180 |
| Wheat (AKS) |
240 |
180 |
| Gold |
500 |
375 |
Trading Margin Composition
At least 30% of the Trading Margin which has to be deposited at the ISE Settlement and Custody Bank must be composed of cash. The maximum amount of non-cash collateral can be 70%.
Collateral Types
accepted by Turkdex |
Minimum
Percentage |
Maximum
Percentage |
Valuation
Coefficient |
| Cash (TL) |
0.30 |
1.00 |
1.00 |
| Foreign Exchange (USD, EUR) |
0.00 |
0.70 |
0.95 |
| Treasury Bill |
0.00 |
0.70 |
0.90 |
| Government Bond |
0.00 |
0.70 |
0.80 |
| Stocks (ISE 30) |
0.00 |
0.35 |
0.70 |
| Mutual Fund (Liquid) |
0.00 |
0.70 |
0.90 |
| Mutual Fund (Type-B) |
0.00 |
0.70 |
0.80 |
| Mutual Fund (Type-A) |
0.00 |
0.35 |
0.70 |
| Letter of Guarantee |
0.00 |
0.70 |
1.00 |
Orders – Order Methods
Limit Orders (LMT)
A price must be entered in order to trade up to a certain limit price.
Market Orders (PYS)
The order shall be filled starting from the best possible price available at the market. In case of marking the “Best Price” option, matching shall take place only with the order at the best price level pending at the market at that moment.
On Close Orders (KAP)
Once the settlement price is determined, “on close orders” shall be matched with the pending “on close orders”. After the “on close” orders pending at the buy and sell sides are matched, the remaining unfulfilled “on close orders” shall match with the normal session orders which meet the settlement price.
Order Types
Keep Remainder Order (KPY)
Fill or Kill Order (GIE)
Fill and Kill Order (KIE)
Market Contingent Order (SAR)
Order Durations
Session Order (SNS)
Day Order (GUN)
Good-Till-Cancelled Order (TAR)
Good-Till-Date Order
Orders - Matching
Orders transmitted to the system are matched in accordance with the price and time priority during the normal session. (Continuous Auction Method (vs. Fixing Method)) Priority rules to be observed during matching are as set forth down below:
Price Priority Rule: Sell orders at lower prices shall be filled before sell orders at higher prices and buy orders at higher prices shall be filled before buy orders at lower prices.
Time Priority Rule: In case of price equality, orders which are transmitted earlier shall be filled first.
For orders to be matched, both orders must have necessary margin deposits.
Risks and Advantages
Possible Opportunities
Turkdex has a leverage system which enables trading up to 10 times of the remainder. It requires capital at lower limits compared to spot markets.
Investors who deposit a minor portion of their capital as initial margin may obtain high returns.
Investors have the opportunity to obtain returns via speculative transactions; by buying at low and selling at high prices and trading as per their expectations at every price in the market.
It allows for short sale.
Possible Risks
The leverage effect which allows for high return opportunity, at the same time forms a high risk when reverse position is taken as per the market conditions. Profit and loss are calculated on the basis of positions taken up to 10 times, and the loss is deducted from the collateral deposited by the investor.
Sample Calculation
ISE 30 Index contract is being traded at 84,000 and you are buying (long position) under the expectation that the market shall rise. The market rises in line with your expectation and the price of the index contract becomes 85,000. Your profit as the result of your purchase in return of the TL 900 cash collateral you had deposited for 1 contract will be 85,000 – 84,000/10: TL 100.
ISE 30 Index contract is being traded at 84,000 and you are selling (short position) under the expectation that the market shall fall. The market falls in line with your expectation and the price of the index contract becomes 83,000. Your profit as the result of your sale in return of the TL 900 cash collateral you had deposited for 1 contract will be 84,000 – 83,000/10: TL 100.
You can receive information from our branches on our commission rates for trading transaction at Turkdex.
Taxation
0% withholding tax is applied to profits obtained from stocks and stock index futures contracts.
10% withholding tax is applied to profits obtained from foreign exchange, interest and commodity future contracts for positions taken on 01.01.2009 and after.
The withholding tax exemption for Capital Companies and Institutional Investors came into effect as of October 1, 2010 at Turkdex.
Withholding tax exemption is valid with regard to transactions executed at Turkdex for joint stock, limited liability and commandit companies the capitals of which are divided into shares that are incorporated as per the provisions of the Turkish Commercial Code and foreign institutions which are similar to the stated.
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