A
Arbitrage: Taking advantage of an asset’s price inequality in different markets for the purpose of profit.
B
Balance of Payments: A statistical report showing records of economic transactions between residents of one economy and residents of another economy during a specific period.
Bartering: An swap between two parties based on an asset or a liability.
Base Effect: The effect of the year the change began when measuring the change between two different periods.
Bear Market: The markets where prices are falling and selling pressure is high.
Bull Market: The markets where the prices are rising and buying pressure is high.
Bonds: A debt instrument with a maturity more than a year. It can be issued by the government or the private sector, and it can be called a treasury bill or a private sector bond.
Buy-Sell Difference: The difference between the buy and sell price of a financial trading asset.
C
Call Options: Contracts that grant rights to buy an underlying asset at a predetermined time and price.
Capital Market: The name given to the markets where investment instruments with maturities longer than one year take place.
Consensus: Fulfillment of obligations arising from fund or security transfers between more than one party.
Consolidation: Restructuring of debt as a result of the debtor’s non-payment.
Credit Risk: The probability of a company’s inability to fulfill its financial obligations on time.
Credit Supply Contraction: In the economy, these are the situations where financing is difficult, liquidity problems arise and credit supply decreases.
Cross Exchange Rates: In global markets, cross exchange rates usually show the exchange rate of two different currencies valued against USD.
Current Exchange Rate: The current exchange rate in the foreign exchange markets.
Currency Risk: In an economy, it is the possibility of fluctuations and volatility that may occur in the exchange rate in the future.
D
Deflation: As the opposite of inflation, it is the continuous decrease in the general level of prices.
Derivative Transactions: The name given to the transactions that are made to be exchanged at a future date. These transactions can be forward, future, swap or option.
Devaluation: The depreciation of the local currency against foreign currencies.
E
Efficient Market Hypothesis: Introduced by Eugene Fama, it is the idea that the asset prices in the market reflect all information, and the prices move randomly.
Electronic Money: The monetary values issued against funds accepted as a method of payment by various institutions.
Emission: The process of issuing a currency into circulation.
Eurobond: A bond issued in a currency other than the local currency.
Export: The sale of goods carried out by residents abroad.
F
Factoring: It is the process of selling the receivables obtained from the sale of goods or services by companies in return for a price.
Financial Stability: In markets, it means the resistance of companies, regulators and institutions against problems in the economy. Financially stable markets are also healthy and well-functioning markets.
Fiscal Policy: Policies implemented by governments to take actions on issues such as employment, growth and inflation, which are the basic elements of an economy.
Fixed Exchange Rate: A regime that ties the value of a local currency to the value of a foreign currency.
Foreign Trade Balance: The trade balance resulting from trade between residents and non-residents. It shows the difference between import and export. If it is positive, that means that there is a foreign trade surplus, and if it is negative, that means that there is a foreign trade deficit.
Futures Contract: The transactions to be made at a future date. These are the financial instruments that focus on the future changes of a financial asset or value.
G
Government Debt Securities: The debt securities issued by The Central Bank of the Republic of Turkey.
Gross Domestic Product: The multiplication of the total added value and the amount produced in a country.
H
Hedging: All operations carried out to be protected by investment risks.
I
Import: The purchase of goods carried out by residents abroad.
Inflation: It is the continuous increase in the general level of prices.
Interbank Money Market: The market where banks affiliated with the Central Bank of the Republic of Turkey make transactions using Turkish Lira among themselves.
Interest Rate: The value of a currency in relation to inflation.
Investment Funds: Portfolios created by vestment companies as a result of bringing together various investment instruments.
Leasing: One of the fundraising methods of companies. In this transaction, a contract is signed between the lessor and the lessee.
Leverage Ratio: It is known as the debt / equity ratio in businesses. In trading platforms, it is the process of using the multiplier of the balance owned by the determined leverage ratio.
Liquidity Risk: The risk that indicates the lack of funds and liquidity in the market. The name of the financial problem that a company faces when its short-term expenses are more than its income.
LIBOR: The London Interbank Offered Rate. It means the interest rates used by highly reputable banks when they lend to each other.
M
Market Interest Rate: The interest rate determined by supply and demand in financial markets.
Monetary Policy: All decisions made to achieve price stability, growth and employment targets.
Money market: The markets where the exchange of assets between short-term fund suppliers and fund demanders takes place.
N
Net Present Value: The value obtained as a result of discounting the returns of an investment during the investment period at a certain discount rate.
Nominal Value: The value written on a security. It is the raw value that is not adjusted for inflation or other data.
Nominal Effective Exchange Rate: The average obtained by choosing an appropriate weighting method of the exchange rates determined for a specific purpose.
O
Options: Options are contracts that allow you to profit from bull or bear scenarios related to the asset without owning the asset. There are two kinds of options called Call Options and Selling Options (Put Options). Call Options are options that give the holder the right to buy the underlying asset at a future date at the price at which the option is written. The price in the contract, which indicates at what price the investor can buy the underlying asset, is called the exercise price or the strike price. Selling Options (Put Options), on the other hand are types of options that give the option buyer the right to sell the underlying asset at a future date at the price on which the option is written.
P
Parity: The value formed as a result of the ratio of the values of one financial asset and another one.
Payment System: The name given to all fund transfer mechanisms between parties.
Price Stability: A desired financial goal that also means a low and stable inflation rate.
Primary Market: The process of issuing and selling an investment instrument for the first time. It is the market in which financial assets meet investors.
R
Real Interest Rate: The nominal interest rate that is adjusted for inflation.
Recession: In the economy, it is the situation in which growth is negative or stagnant.
Repo: The process of buying goods with a commitment to sell them back at a later date.
S
Secondary Market: The market in which previously issued financial assets are traded.
Self-financing: Self-financing means that a company does not distribute the profits in order to use them in future investments.
Selling Options: Selling Options are options that give the option buyer the right to sell the underlying asset at a future date at the price at which the option is written. These are also called “Put Options”.
Short Selling: Borrowing and selling a financial asset whose price is predicted to decrease.
Systematic Risk: Risks affecting all stakeholders in a system. For example, inflation risks, currency rate risks, political risks, war risks, etc.
T
Technical Analysis: A type of analysis made for the future by making use of the past price movements of a financial asset through various technical indicators.
Tertiary Market: The markets where there are types of transactions made in the over-the-counter markets (OTC).
Treasury Bills: The short-term debt instruments issued by the Central Bank of the Republic of Turkey.
V
Value Date: The date on which an agreed transaction is recorded in accounts. For example, it is the date on which a fund can be used by the depositor.
Volatility: The situation where the gap between the highest and the lowest points in a financial asset price is wide. It expresses the length of the price movements in the market.
W
World Bank: An international organization established in 1944. It provides long-term loans for developing countries and works on foreign indebtedness and poverty of countries.
