Types of Warrants
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Field | Description |
|---|
Underlying Asset | Stock |
How to Trade? | They are traded continuously on the Borsa Istanbul Equity Market and are bought and sold like stocks. |
Advantages | Call and put warrants offer the opportunity to invest in both rising and falling market expectations. They provide leverage to investors with a small amount of capital. There is no margin requirement. While maximum profit is unlimited, maximum loss is limited to the premium paid.
|
Risks | They have a specific expiration date. They lose time value. They may expire worthless at maturity. Due to their leveraged nature, they can lose value quickly.
|
Last Trading Day | Maturity date |
Settlement Date | T+2 |
Payment Date | T+3 |
Settlement Value Used in the Maturity Settlement Account | The last transaction price of the relevant underlying asset during the closing session on the last day of the maturity period. |
Maturity Date Calculation | The most important detail in the maturity calculation is the warrant's multiplier (conversion ratio). This multiplier indicates how many underlying assets the warrant has the right to buy or sell. In equity warrants, multipliers vary depending on the underlying asset.
For example:
For a call warrant with a strike price of 5.00 TRY and a multiplier of 0.5;
If the settlement value of the relevant underlying asset used in the calculation at maturity is 8.00 TRY:
(settlement price - strike price) * multiplier → (8.00 – 5.00) * 0.5 = 1.50 TRY.
If the settlement value of the relevant underlying asset used in the calculation at maturity is 3.00 TRY:
The warrant expires worthless, meaning its value is "0".
For a put warrant with a strike price of 5.00 TRY and a multiplier of 0.5;
If the settlement value of the underlying asset used in the calculation at maturity is 3.00 TRY:
(exercise price - settlement price) * multiplier → (5.00 – 3.00) * 0.5 = 1.00 TRY.
If the settlement value of the underlying asset used in the calculation at maturity is 8.00 TRY:
The warrant expires worthless, and its maturity value is "0". |
Field | Description |
|---|
Underlying Asset | BIST30 Index |
How to Trade? | They are traded continuously on the Istanbul Stock Exchange Equity Market and are bought and sold like stocks. |
Advantages | Call and put warrants offer the opportunity to invest in both rising and falling market expectations. They provide leverage to investors with a small amount of capital. There is no margin requirement. While maximum profit is unlimited, maximum loss is limited to the premium paid.
|
Risks | They have a specific expiration date. They lose time value. They may expire worthless at maturity. Due to their leveraged nature, they can lose value rapidly.
|
Last Trading Day | Maturity date |
Settlement Date | T+2 |
Payment Date | T+3 |
Settlement Value Used in the Maturity Settlement Account | BIST30 end-of-day closing price |
Maturity Date Calculation | The most important detail in the maturity calculation is the warrant's multiplier (conversion ratio). This multiplier indicates how many underlying assets the warrant gives the right to buy or sell.
For example:
For an index CALL warrant with a strike price of 1300 and a multiplier of 0.01,
If the relevant index settlement value used in the calculation at maturity is 1350:
(1350 – 1300) × 0.01 = 0.50 TRY.
If the relevant index settlement value used in the calculation at maturity is 1300 or below 1300:
The CALL warrant expires worthless, i.e., its value becomes "0".
For an index SELL warrant with a strike price of 1300 and a multiplier of 0.01,
If the relevant index settlement value used in the calculation at maturity is 1200:
(1300 – 1200) × 0.01 = 1.00 TRY.
If the relevant index settlement value used in the calculation at maturity is 1300 or above:
The put warrant expires worthless, meaning its value becomes "0". |
Field | Description |
|---|
Underlying Asset | DAX Index |
How to Trade? | They are traded continuously on the Istanbul Stock Exchange Equity Market and are bought and sold like stocks. |
Advantages | Call warrants allow you to invest in a rising market, while put warrants allow you to invest in a falling market. They provide leverage to investors because investments can be made with relatively small capital. There is no margin requirement. While maximum profit is unlimited, maximum loss is limited to the premium paid.
|
Risks | They have a specific expiration date. They lose time value. They may expire worthless at maturity. Due to their leveraged nature, they can lose value rapidly.
|
Last Trading Day | Maturity date |
Settlement Date | T+2 |
Payment Date | T+3 |
Intra-maturity Pricing | Unlike warrants based on domestic underlying assets, in warrants linked to an underlying asset priced in a foreign currency, the exchange rate level is reflected in warrant prices as a variable. The exchange rate will affect the value of the warrant.
While warrants are priced in the currency in which the underlying asset is traded, they are converted into Turkish Lira by multiplying them by the current exchange rate at the time of quotation transmission to Borsa Istanbul. Therefore, movements in the relevant exchange rate also affect the prices of warrants.
Assuming other parameters remain constant, an increase in the exchange rate against the Turkish Lira has a positive effect on call and put warrants, while a decrease in the exchange rate has a negative effect. |
Settlement Value Used in the Maturity Settlement Account | The closing value of the DAX index on the maturity date is the settlement value taken into account at the maturity of the warrant.
For warrants that expire in the money, the difference between the settlement price and the exercise price is multiplied by the multiplier and then multiplied by the indicative Euro/Turkish Lira buying rate announced by the Central Bank of the Republic of Turkey (CBRT) on the maturity date.
The resulting amount is paid to the investor in cash on the third settlement day following the maturity date. |
Maturity Date Calculation | When calculating the maturity date, the warrant's multiplier (conversion ratio) must be adjusted. This multiplier indicates how many underlying assets the warrant has the right to buy or sell. Multipliers in warrants vary depending on the underlying asset.
For example:
For a DAX index CALL warrant with a strike price of 15,000 EUR and a multiplier of 0.0002;
If the settlement value of the relevant underlying asset used in the calculation at maturity is EUR 16,000 and EUR/TRY is 10.00:
(settlement price - strike price) * multiplier →
(16,000 – 15,000) * 0.0002 * 10.00 = 2 TRY.
If the settlement value of the underlying asset used in the calculation at maturity is 15,000 EUR or below:
The warrant expires worthless, meaning its value becomes "0".
For a DAX index PUT warrant with a strike price of 15,000 EUR and a multiplier of 0.0002;
If the settlement value of the underlying asset used in the calculation at maturity is 14,500 EUR and EUR/TRY is 10.00:
(strike price - settlement price) * multiplier →
(15,000 – 14,500) * 0.0002 * 10.00 = 1 TRY.
If the settlement value of the underlying asset used in the calculation at maturity is 15,000 EUR or above:
The warrant expires worthless, and the maturity value is "0". |
Field | Description |
|---|
Underlying Asset | Brent Crude Oil Futures Contract |
How to Trade? | They are traded continuously on the Borsa Istanbul Equity Market and are bought and sold like stocks. |
Advantages | They offer the opportunity to invest in rising markets with call warrants and falling markets with put warrants. They provide leverage to investors due to the relatively small amount of capital required for investment. There is no margin requirement. While maximum profit is unlimited, maximum loss is limited to the premium paid.
|
Risks | They have a specific expiration date. They lose time value. They may expire worthless at maturity. Due to their leveraged nature, they can lose value rapidly.
|
Last Trading Day | Maturity date |
Settlement Date | T+2 |
Payment Date | T+3 |
Intra-maturity Pricing | Unlike warrants based on domestic underlying assets, in warrants linked to an underlying asset priced in a foreign currency, the exchange rate level is reflected in warrant prices as a variable.
Warrants are priced in the currency in which the underlying asset is traded, but are converted into Turkish Lira by multiplying them by the current exchange rate at the time of quotation transmission to Borsa Istanbul. Therefore, movements in the relevant exchange rate also affect the prices of warrants.
Assuming other parameters remain constant, an increase in the exchange rate against the Turkish Lira has a positive effect on call and put warrants, while a decrease in the exchange rate has a negative effect. |
Settlement Value Used in the Maturity Settlement Account | The settlement price of the relevant ICE Brent crude oil futures contract traded on ICE Futures Europe – Commodities Exchange is the settlement value of the underlying asset.
For warrants that expire in the money, the difference between the settlement price and the exercise price is multiplied by the multiplier and then multiplied by the indicative US Dollar/Turkish Lira buying rate announced by the Central Bank of the Republic of Turkey (CBRT) on the maturity date.
The resulting amount is paid to the investor in cash on the third settlement day following the maturity date. |
Maturity Date Calculation | In the maturity calculation, the warrant's multiplier (conversion ratio) must be adjusted. This multiplier indicates how many underlying assets the warrant grants the right to buy or sell. Multipliers in warrants vary depending on the underlying asset.
For example:
For a Brent Crude Oil CALL warrant with a strike price of 70 USD and a multiplier of 0.05;
If the settlement value of the relevant underlying asset used in the maturity calculation is 75 USD and USD/TRY is 8.00:
(settlement price - strike price) * multiplier →
(75 – 70) * 0.05 * 8.00 = 2.00 TRY.
If the settlement value of the underlying asset used in the calculation at maturity is 70 USD or below:
The warrant expires worthless, meaning its value is "0".
For a Brent Crude Oil PUT warrant with a strike price of 80 USD and a multiplier of 0.05;
If the settlement value of the underlying asset used in the calculation at maturity is 70 USD and USD/TRY is 8.00:
(strike price - settlement price) * multiplier →
(80 – 70) * 0.05 * 8.00 = 4.00 TRY.
If the settlement value of the underlying asset used in the calculation at maturity is 80 USD or above:
The warrant expires worthless, and its maturity value is "0". |
Field | Description |
|---|
Underlying Asset | Ounce of Silver |
How to Trade? | They are traded continuously on the Borsa Istanbul Stock Exchange and are bought and sold like stocks. |
Advantages | Call warrants allow investment in rising markets, while put warrants allow investment in falling markets. They provide leverage to investors due to the relatively small amount of capital required for investment. There is no margin requirement. While maximum profit is unlimited, maximum loss is limited to the premium paid.
|
Risks | They have a specific expiration date. They lose time value. They may expire worthless at maturity. Due to their leveraged nature, they can lose value rapidly.
|
Last Trading Day | Maturity date |
Settlement Date | T+2 |
Maturity Payment Date | T+3 |
Intra-Maturity Pricing | Unlike warrants based on domestic underlying assets, in warrants linked to an underlying asset priced in a foreign currency, the exchange rate level is reflected as a variable in warrant prices.
While warrants are priced in the currency in which the underlying asset is traded, they are converted into Turkish Lira by multiplying them by the current exchange rate at the time of quotation transmission to Borsa Istanbul. Therefore, movements in the relevant exchange rate also affect the prices of warrants.
Assuming other parameters remain constant, an increase in the exchange rate against the Turkish Lira has a positive effect on call and put warrants, while a decrease in the exchange rate has a negative effect. |
Settlement Value Used in the Maturity Settlement Account | The “Underlying Index Settlement Price” used as a reference in settlement calculations is the average (mid) value fixed at the continuous trading closing time and minute of the Istanbul Stock Exchange Equity Market on the Bloomberg BFIX screen for the XAGUSD rate at maturity.
This value is expressed in US Dollars (USD).
For warrants that expire in the money, the difference between the settlement price and the exercise price is multiplied by the multiplier, and the resulting value is multiplied by the indicative US Dollar/Turkish Lira buying rate announced by the Central Bank of the Republic of Turkey (CBRT) on the maturity date.
The resulting amount is paid to the investor in cash on the third settlement day following the maturity date. |
Maturity Date Calculation | In the maturity calculation, the warrant's multiplier (conversion ratio) must be adjusted. This multiplier indicates how many underlying assets the warrant grants the right to buy or sell. Multipliers in warrants vary depending on the underlying asset.
For example:
For a Silver BUY warrant with a strike price of 23 USD and a multiplier of 0.05;
If the settlement value of the underlying asset used in the maturity calculation is 25 USD and USD/TRY is 8.00:
(settlement price - strike price) × multiplier × exchange rate →
(25 – 23) * 0.05 * 8.00 = 0.80 TRY.
If the settlement value of the underlying asset used in the calculation at maturity is 23 USD or below:
The warrant expires worthless, meaning its value is "0".
For a Silver SELL warrant with a strike price of 27 USD and a multiplier of 0.05;
If the settlement value of the underlying asset used in the calculation at maturity is 25 USD and USD/TRY is 8.00:
(strike price - settlement price) × multiplier × exchange rate →
(27 – 25) * 0.05 * 8.00 = 0.80 TRY.
If the settlement value of the underlying asset used in the calculation at maturity is 27 USD or above:
The warrant expires worthless, and the maturity value becomes "0". |
Field | Description |
|---|
Underlying Asset | Ounce of Gold |
How to Trade? | They are traded continuously on the Borsa Istanbul Stock Exchange and are bought and sold like stocks. |
Advantages | Call warrants allow you to invest in a rising market, while put warrants allow you to invest in a falling market. They provide leverage to investors because investments can be made with relatively small capital. There is no margin requirement. While maximum profit is unlimited, maximum loss is limited to the premium paid.
|
Risks | They have a specific expiration date. They lose time value. They may expire worthless at maturity. Due to their leveraged nature, they can lose value quickly.
|
Last Trading Day | Maturity date |
Settlement Date | T+2 |
Maturity Payment Date | T+3 |
Intra-maturity Pricing | Unlike warrants based on domestic underlying assets, in warrants linked to an underlying asset priced in a foreign currency, the exchange rate level is reflected in warrant prices as a variable.
Warrants are priced in the currency in which the underlying asset is traded, but are converted into Turkish Lira by multiplying them by the current exchange rate at the time of quotation transmission to Borsa Istanbul. Therefore, movements in the relevant exchange rate also affect the prices of warrants.
Assuming other parameters remain constant, an increase in the exchange rate against the Turkish Lira has a positive effect on call and put warrants, while a decrease in the exchange rate has a negative effect. |
Settlement Value Used in the Maturity Settlement Account | The “Underlying Index Settlement Price” used as a reference in settlement calculations is the average (mid) value fixed at the continuous trading closing time and minute of the Istanbul Stock Exchange Equity Market on the Bloomberg BFIX screen for the XAUUSD rate on the maturity date.
This value is expressed in US Dollars (USD).
For warrants that expire in the money, the difference between the settlement price and the exercise price is multiplied by the multiplier, and the resulting value is multiplied by the indicative US Dollar/Turkish Lira buying rate announced by the Central Bank of the Republic of Turkey (CBRT) on the maturity date.
The resulting amount is paid to the investor in cash on the third settlement day following the maturity date. |
Maturity Date Calculation | In the maturity calculation, the warrant's multiplier (conversion ratio) must be adjusted. This multiplier indicates how many underlying assets the warrant grants the right to buy or sell. Multipliers in warrants vary depending on the underlying asset.
For example:
For a Gold BUY warrant with a strike price of 1700 USD and a multiplier of 0.001;
If the settlement value of the underlying asset used in the maturity calculation is 1750 USD and USD/TRY is 8.00:
(settlement price - strike price) × multiplier × exchange rate →
(1750 – 1700) * 0.001 * 8.00 = 0.40 TRY.
If the settlement value of the underlying asset used in the calculation at maturity is 1700 USD or below:
The warrant expires worthless, meaning its value is "0".
For a Gold SELL warrant with a strike price of 1800 USD and a multiplier of 0.001;
If the settlement value of the underlying asset used in the calculation at maturity is 1750 USD and USD/TRY is 8.00:
(strike price - settlement price) × multiplier × exchange rate →
(1800 – 1750) * 0.001 * 8.00 = 0.40 TRY.
If the settlement value of the underlying asset used in the calculation at maturity is 1800 USD or above:
The warrant expires worthless, and the maturity value is "0". |
Field | Description |
|---|
Underlying Asset | BIST Spot Gold Index
(The BIST Spot Gold Index is calculated by converting the USD/ounce spot gold prices formed in international markets into TRY/gram prices.) |
How to Trade? | They are traded continuously on the Borsa Istanbul Equity Market and can be bought and sold like stocks. |
Advantages | With call and put warrants, it is possible to invest in both rising and falling market expectations. They provide leverage to investors with a small amount of capital. There is no margin requirement. While maximum profit is unlimited, maximum loss is limited to the premium paid.
|
Risks | They have a specific expiration date. They lose time value. They may expire worthless at maturity. Due to their leveraged nature, they can lose value quickly.
|
Last Trading Day | Maturity date |
Settlement Date | T+2 |
Payment Date | T+3 |
Settlement Value Used in the Maturity Settlement Account | BIST Spot Gold Index closing price at the end of the day |
Maturity Date Calculation | The most important detail in the maturity calculation is the warrant's multiplier (conversion ratio). This multiplier indicates how many underlying assets the warrant has the right to buy or sell.
For example:
For a BUY warrant based on the BIST Spot Gold Index with a strike price of 3200 and a multiplier of 0.005;
If the relevant index settlement value used in the calculation at maturity is 3300:
(3300 – 3200) × 0.005 = 0.50 TRY.
If the relevant index settlement value used in the calculation at maturity is 3200 or below:
The CALL warrant expires worthless, i.e., its value becomes "0".
For an index SELL warrant with a strike price of 3200 and a multiplier of 0.005;
If the relevant index settlement value used in the calculation at maturity is 3000:
(3200 – 3000) × 0.005 = 1.00 TRY.
If the relevant index settlement value used in the calculation at maturity is 3200 or above:
The put warrant expires worthless, meaning its value becomes "0". |
