International Derivative Markets

What is a Derivative Product?

Derivative products are financial instruments whose value is linked to a different underlying asset. To describe with an example, while a stock is a spot product, a financial instrument that grants the right to buy or sell the stock in question at a future date is a derivative product. The main types of derivative products include forward contracts, futures contracts, and options.

With your Ak Investment account, you can execute futures contracts and option trades on International exchanges.

International Futures Contracts

International futures contracts are agreements that oblige the parties to buy or sell a specific asset (such as stock indices, commodities, currency pairs, or bonds) at a predetermined price on a future date.

Advantages of International Futures Contracts:

Forex Markets: You can open positions larger than your margin. (For example, with 1:10 leverage, you can trade $10,000 with a $1,000 margin)
Two-Way Trading: You can open positions in either the upward or downward direction based on your expectations.
Standardized Contracts: Each futures contract has a specific size and expiration date.
Liquidity and Volatility: Futures traded in large markets have high liquidity and can experience significant price fluctuations during the day.

International Options

International options are contracts that give the buyer the right, in exchange for an option premium, to buy or sell a specific asset (such as stocks, stock indices, commodities, currency pairs, or bonds) at a predetermined price on a future date. The option seller, in exchange for the option premium received, undertakes to buy or sell the underlying asset to the option buyer.

The contract size for option contracts with an underlying asset of stocks (Equity Options) is 100 lots of shares. For option contracts where the underlying asset is a futures contract (Listed Options), the contract size is 1 futures contract. Physical delivery occurs at the expiration date for these options. European-style options are exercised on the expiration date, while American-style options can be exercised at any time up to the expiration date.

What You Need to Know About International Derivative Products

How to Trade International Derivative Products?

To trade International derivative products, you only need to have an International stock account. You can execute your trades via the TradeAll UP platform or Akbank Mobile.

For TradeAll UP applications please click here.

For detailed information on how to log in and perform transactions via TradeAll UP and Akbank mobile, please click here.

For the TradeAll UP trading platform user guide, please click here.

How to Deposit/Withdraw Collateral?

You can deposit and withdraw collateral from your account via Akbank Mobile or Akbank Internet Branch. Collateral deposits made before 3:00 p.m. will be reflected in your account immediately, while deposits made after 3:00 p.m. will be reflected in your account one business day later. Withdrawal transactions will be reflected in your Ak Investment current account one business day later.

For detailed information about the steps involved in margin deposit/withdrawal transactions, please click here.

What are the commissions and costs for International derivative transactions?

For International futures contracts traded on US exchanges, the commission is 9 USD per contract + exchange fee, and for option transactions, it is 12 USD per contract + exchange fee.

For detailed commission and expense information regarding International derivative products, please click here.

How are income from International derivative products taxed?

Profits earned from International derivative products must be declared on the annual income tax return. For detailed information on taxation, please click here.

What are the Margin Usage Ratio, Margin Call, and Stop Out Levels?

The margin usage ratio is the ratio of the current cash margin in the account to the maintenance margin. When the cash margin reaches 100% of the maintenance margin, a margin call is triggered, and the investor is required to deposit additional margin into their account. When the maintenance margin reaches 150% of the cash margin, the stop out is triggered, and the system automatically sends a closing order to the market for all derivative positions in the account.

The initial margin must be available in the account to open a position. The initial margin is 10% more than the maintenance margin.
If the stop-out level is reached, open positions in the market are closed, and for closed positions, the system holds passive orders to be closed at market opening.
Pending stop-out passive orders cannot be canceled or modified even if funds are deposited into the account.