By way of hedging from the currency risk with the currency futures and hedging performance

Because of the currency risks, the exporter firms? expected incomes decrease. On the other hand, it is seen that the currency risk doesn?t affect the exporter?s expected income in comparison with protecting by them selves against the currency risk in other words with using of futures contracts. The exporters can make their risks minimize, making hedging purpose trading with the YTL/Dollar contracts at the Turkish Derivatives Exchange.In this paper, the hedging performance of the futures contract will be emphasized with comparing the exchange rate on the spot market and the futures contract (YTL/Dollar)on the Turkish Derivatives Exchange. Used empirical methodology is ARCH and GARCH processes. On the other hand hedging ratios are estimated (computed) in different ways and the result of the best hedging ratio is given by the MA processes is reached.Keywords; 1) Derivatives Markets, 2) Futures Contracts, 3) Risk Hedging Performance, 4) ARCH, 5) GARCH