Forward
Forward contracts are the legally binding commitments stipulating the purchase or sale of a specific commodity at a future date at a predetermined price and quantity. For this reason, the transaction, maturity and amount can be determined according to needs.
It is a forward transaction aimed at managing exchange rate risks and obligations should be fulfilled at maturity.
Swap
Swap transactions, which are used by individuals and institutions aiming to manage cash flow and interest liabilities, are binding contracts that include mutual commitments of two parties to make payments to each other at certain periods. The definition of the assets that will exchanged, the fixed or variable interest rate to be applied and the payment dates should be specified in the relevant contract.
Option
These are forward transactions that allow the purchase/sale of an underlying asset determined on the transaction date, to be exchanged at a future date at a price determined on the transaction date.
An Options Contract involves two parties: the option holder and the option writer.
The Option Holder obtains a right to carry out the relevant purchase or sale transaction in return for the Option Premium paid. The Option Writer assumes the obligation to carry out the relevant transaction, should the option is exercised in return for the Option Premium collected.