Why Invest in TurkDEX Futures?

No Regulatory Restrictions for International Investors

  • International investors are eligible to trade all TurkDEX products without any regulatory restrictions.
  • International investors have considerable share in trading volume of TurkDEX by holding the majority of open positions.
  • Capital Markets Board is designated as the regulatory institution to regulate and inspect the market.
  • The strength of Capital Market Board's regulatory capabilities assures financial integrity of the market.

Tax Incentives

  • TurkDEX is tax free for foreign and domestic investors. While the withholding tax exemption may be over at the end of 2008 for local investors, the non-resident investors will continue to enjoy this advantageous tax regime in the future. Tax exemption is granted for all TurkDEX products.

A New Way of Hedging Turkey

  • TurkDEX offers the long needed risk management and hedging tools in the Turkish financial markets.
  • Both local and foreign investors can hedge their Turkish equity and currency exposure by using TurkDEX future contracts.
  • "ISE-30 Equity Futures" are widely used for hedging purposes by hedge funds and other institutional investors.

Liquid and Cost-Efficient Market

  • High volumes ensure the efficient execution of trades
  • Brokerage fee is the only (and final) cost
  • Cash portion of the margin receives overnight interest with no capital cost

Going Short in Equities

  • Lack of established stock lending market in Turkey prevents investors to take short positions in equity and fixed income instruments.
  • The only platform to short efficiently the Turkish equity market is provided by TurkDEX

Leverage and Attractive Small Contract Size

  • Required margin is almost 10% of the value of the contract.
  • Around $4,000 contract size in equity index futures is small enough even for the smallest investor to participate.

Financial Integrity

  • A well regulated, efficient and financially sound clearing service is in place through Takasbank (the central clearing house in Turkey).
  • The financial and operational safeguard system is comparable to the best international practices.
  • The Market Operation and Surveillance department is responsible for detecting any fraudulent trading practices, abuses or any violation rules and regulations.

Alternative Investment Tools for Turkish Investors

  • With the launch of TurkDEX futures, Turkish investors found the opportunity to invest in new alternative financial instruments other than long used classical investment tools such as bonds, equities and bank deposits.
  • Local brokerage companies created new OTC derivatives products for their clients by using TurkDEX futures contracts at the back and enriched their product range extensively.