Forward transaction and derivative facilities of option exchange in turkeyrisk management: Application of risk management techniques for futures? market

Companies want to facilitate the risk management ,they also want to envisage the prices in future,and preserve the operating capital when taking a decision for the future. The risks that companies may face in future are chop and changes in exchange rate risks,market risk , credit risk,interest rate risk and liquidity risk .Companies want to avoid risks which they may face in future or they want to minimize them.To avoid these risks we can arrange them into three groups which are portfolio diversification, hedging and insurance.Turkey met Forward Transaction and Option Exchange in the year 2005. There is prepared a survey set out from traded derivative instruments in steady markets by taking their characteristics in consideration. Wanting company managers to prioritize the order of preferences when choosing a derivative was done after resulting the survey.The last step of the thesis was to apply the facilities to 40 companies which transact in future markets and the results were analysed to determine the risks which the companies may face in future and how they try to protect themselves against these risks. It is suggested that companies should transact in future markets in order to be succesful in risk management.Keywords :Risk Manangement, Derivative Product Market, Derivatives Exchange, Forward Transaction Futures, Hedge