Our Trade Authorization
In accordance with the Capital Market Law No. 6362, our Company has applied to the Capital Market Board for the renewal of its authorization certificates. It has been decided that our Company be classified as a "Fully Authorized Brokerage Firm" in accordance with the Communiqué No. III-37.1 on Principles Regarding Investment Services and Activities and Ancillary Services, and permission has been granted to engage in the investment services and activities listed in the attached file.
What is FX?
Foreign Exchange (FX) is the world's most liquid financial market, where the relative values of national currencies are bought and sold globally.
USD, EUR, GBP, AUD, CAD, CHF, and JPY are major currencies. In exchange rates, the first rate is the base currency, and the second is the counter currency. The base currency is used for buying and selling transactions, while profit/loss calculations are made using the counter currency.
In the Forex market, when you buy a currency, you take a "long" position in that base currency, and when you sell a currency, you take a "short" position in that base currency. To close your current position, you only need to take equal and opposite positions in the same currency pair.
For example, if you buy EUR/USD at 1.3250 expecting EUR to appreciate against USD, you have bought 1 EUR (long position) and simultaneously sold 1.3250 USD (short position). To close this transaction, you need to sell the same amount in the EUR/USD pair.
The price difference between the buy price ("bid price") and the ask price ("ask price") is called the "spread" (base). Yapı Kredi's buy price (bid price) indicates the price at which you can sell, while Yapı Kredi's ask price indicates the price at which you can buy.
Because FX markets have high liquidity, the risk of manipulation in these transactions is low. Being open 24 hours a day, five days a week, it provides ease of trading, allowing you to take or close positions at any time in line with global developments. You can profit from price movements in both directions. You have the opportunity to profit whether prices are rising or falling. Thanks to the variety of order types, you can limit your losses and take your profits at predetermined levels without being in front of the screen by placing orders on the trading platform, or you can place buy/sell orders for predetermined levels.
PRICING
Yapı Kredi Yatırım Menkul Değerler A.Ş. (“Yapı Kredi Yatırım”) works with leading banks worldwide as a liquidity provider. As a market maker, Yapı Kredi Yatırım can also determine and reflect prices on the platform itself. Our Forex trading platform filters the quotes from these banks or the prices reflected by Yapı Kredi Yatırım as a market maker, considering the most competitive prices for the investor at that moment. Prices are displayed on the investor's screen as Yapı Kredi Yatırım quotes. Investors execute their transactions based on these quotes. In
leveraged transactions, situations where a position is taken against the client and, due to the nature of the service or product offered, the client's loss results in a profit for the investment firm, may lead to a conflict of interest.
Procedure Glossary
Order: Instructions transmitted to an electronic trading platform for the purchase or sale of an asset. Swap/Carry Cost: The amount an investor earns in interest income or incurs in interest expense as a result of the interest rates applied to the currencies in which positions are taken in trading transactions. Reverse Transaction: Taking a short position against a long position, or a long position against a short position. Leverage: Shows the amount of position that can be taken in return for the amount of collateral deposited for trading. Leverage Ratio: The ratio showing the amount of position that can be taken in return for the amount of collateral deposited for trading. Leveraged Trading: The buying or selling of currencies, commodities, precious metals, and other assets electronically, without physical delivery, at a specific leverage ratio, in return for the collateral deposited. Electronic Trading Platform (ETP): An electronic platform where investors can perform leveraged trading, view their FX account status, and see current FX prices in real-time. Spread: The difference between the buying price and the selling price. Base Currency: The first currency in the currency pair being traded. Counter Currency: The second currency in the currency pair being traded. Long Position: A position created by buying the base currency. In this position, the investor will profit from an increase in the base currency's price. Short Position: A position created by selling the base currency. In this position, the investor will profit from a decrease in the base currency's price. Open Position: An open position where profit or loss has not yet been realized and is not yet closed. Closed Position: When an investor closes a position in the currency pair they are trading by accepting their current profit or loss and performing a reverse transaction. The resulting profit or loss is credited to the investor's balance. Margin: The equity required for an investor to conduct buy and sell transactions. Initial Margin: The minimum equity amount required for an investor to open a new position. Maintenance Margin: The minimum equity amount required for an investor to maintain an open position. Demo Trading Platform: A simulation that allows investors to trade with virtual money as if they had real money, without actually depositing any, enabling them to observe market movements with live or delayed price trials. Pip:The spread is the smallest price increment used in the quotation of any currency. It is expressed in "pips". It is generally 1/10,000, but for currencies like JPY, it is accepted as 1/100. Risk Disclosure: This is a statement that outlines the risks and potential losses an investor may encounter in transactions across various markets. Value Date: The value date is the settlement or clearing date of a transaction. In the Forex market, the value date is generally t+2 (two business days from the transaction date). Only USDCAD, USDRUB, and USDTRY have a value date of t+1. Stop Loss Order: An order to close an open position to prevent further losses and keep the initial position at a certain level. Market Order: An order to buy or sell at the active market price. Limit Order: A buy or sell order placed at a specific price level outside the active price level. Buy Limit: An order placed to buy at a price lower than the market price. Sell Limit: An order placed to sell at a price higher than the market price. Buy Stop: Selected when the market is expected to rise further after reaching a certain price. It is a conditional order type placed to buy at a price higher than the market price. Sell Stop: Selected when the market is expected to fall further after reaching a certain price. It is a conditional order type placed to sell at a price lower than the market price. Order Validity Period: Specifies how long the order is valid. Trading Log (Journal): The menu where all past transactions and order details are displayed after account opening. Margin Call: If an investor who has used all of their margin incurs a loss, their position falls below the minimum margin required to maintain it. A margin call is a warning from the brokerage firm to the investor to increase this margin. Scalping: Trading in very short periods of time, frequently and in very small price ranges. Balance: The amount of cash you hold in your account as collateral. Assets: The account value obtained by subtracting profit or loss from the balance. Margin: The amount you use to open a position. Free Margin: The amount you can use to open a new position in addition to your existing positions. Margin Level: Calculated by dividing assets by margin and multiplying by 100%. Target Spread:This is the best spread we can offer under normal market conditions. In volatile markets, the spread may widen and deviate from the target after the European market close or when important data is to be released |