Investigation of the legislation in terms of derivative products in Turkey and accounting standards accounting framework

After 1970's, price fluctuations are experienced in the market. The main reason was; Bretton Woods system of monetary manegement came to the end due to the changes in financial system. New financial tools are developed in order to minimize currency risk and interest rate of the investors in the uncertain and fluctuating market coditions. The new tools are named as derivative products or derivative tools. Derivative products are very important to minimize the risks of investors. The derivative products, starting with forward contracts has been developed with with the organized markets and the product variety is increased by development of future, option and swap contracts. The demand of financial product is increasing with the uncertainty for the future in the market. The de-mand of financial products is increasing with the uncertainty for the future in the market. The utmost advantage and the biggest risk at the derivative product. If the derivative product is used for speculations, effect of the financial leverage can cause very serious amount of profit or financial losses. Derivative product are becoming more and more important especiallyin the developing countries, which have higher risks in the financial market. If we focus to Turkey, same developing picture of derivative product is also valid. The aim of this study is introduce the derivate tools in the futures market; to show the use cases in Turkish market. With the focus of development, taxation and accounties. Keywords: Derivative Financial Instruments, Derivatives Markets, The development of derivatives markets in Turkey, Taxation For Derivative Instruments, Accounting For Derivative Instruments