Futures contracts on agricultural products in futures and options markets Turkey application

The parties that act with the motive of profiting within the market conditions, aim to minimize the uncertainty caused by the economic conditions and the risks that arise paralel to this. For this objective, various financial means are formed and the parties, with the use of these financial means, plan to avort themselves from the indefiniteness that will prevent the realizing of their expectations. Term Process (Futures) Market is one such financial tool. It aims for the future purchasing or delivery of a good with price verified today. These markets that were first formed in the 19th century are based on risk transfer and, by establishing a balance between the party that aim to protect themselves from risks that may occur in the future (Hedger) and the party that plans to profit by buying this risk (Speculator), it allows the actualizing of the risk transfer. The financial futures tools which are used by investors to protect againist losses due to uncertainties in the future, are being introduced.The impotance and sorts of these financial futures markets tools are given. Term Process Markets in our country are at a formation stage.For the validity of these markets which are considered to initially become active in agricultural products with cotton and wheat, the government interference upon the price flow of agricultural products must be cessated. Liquidty and volatility on Exchange will be provided by contribution of speculators and merchants who would like to minimize their risks. rv