Forward : Forward transactions are products that can be used for protection against the negative effects of fluctuations in the asset prices and for generating return from these fluctuations.(USD,EUR,GBP,TL deals)
DCD: Dual Currency Deposit transaction (DCD), is the overall term used for the transaction where the Bank pays a premium in exchange for buying the option, while securing the deposit amount as collateral.
DCD is an options transaction in which the Bank pays you a premium for the FX option you have sold to the Bank that gives the Bank the right to buy a specified currency (USD, EUR, TL, GBP) at a predetermined exchange rate on a specified date. The total amount involved in the option is linked to a time deposit account for the same term which also allows you to earn interest for that period.
Options : Options are agreements which give a certain amount of assets, economic or financial indicator, money or capital market instrument, commodity or foreign currency, the right to buy or sell from a certain price, all of which form a base for the option, to option buyer in exchange of Premium but do not oblige the buyer, but oblige the option seller to sell in case the buyer requests as such in certain maturity (Europe type option) or up to a certain maturity (American type option). With this structure, the options can be compared to an insurance transaction by the party that buys the right by paying premiums.USD,EUR,GBP,TL deals .
There are mainly 2 option types;
Call Option: Call option is a type of option agreement which gives the party buying the option agreement the right to buy a certain quantity of the asset, which is written in the agreement, at a certain time or up to a certain time for a defined price.
Put Option: Put option is a type of option agreement which gives the party buying the option agreement the right to sell a certain amount of the asset, which is written in the agreement, at a certain time or up to a certain time for a defined price.
Swap: “Swap” is an English word meaning “interchange, exchange” in Turkish. In the financial markets, swap is the exchange of foreign currency, interest or securities or their cash flows, in other words their payment commitments, at the end of specific period or during a specific period.(USD,EUR,GBP,TL deals)
Swap transactions can be conducted by trading many assets such as foreign currency, precious metal, interest, equity and bill/bond.
FX (Foreign Exchange) Swap
They are agreements of forward transactions which are made for exchanging a currency with another currency and repayment of the exchanged principals at the end of a specific period. In FX swap transactions, the amount exchanged in the beginning of the transaction is repaid on the maturity date which is defined in the agreement in terms of the amount calculated with exchange/parity which is again defined in the agreement. In other words FX swap is formed as a combination of spot FX transaction conducted on the date of agreement and forward transaction in the opposite direction of the initial transaction which was agreed to be conducted on the maturity date. (If the initial transaction is buying spot, a forward sales agreement is made on the maturity date, if the initial transaction is selling spot, a forward purchase agreement is made on the maturity date.