Borsa Istanbul to introduce short indices
22 March 2016 Istanbul
Image: Shutterstock
Borsa 陌stanbul, Turkey鈥檚 primary stock exchange, will start to calculate leveraged and short indices that cover investment strategies from 1 April.
The exchange expects the leveraged and short indices to provide the opportunity to get same or inverse index exposure in return for smaller cash positions.
The objective of leveraged indices is to reflect the return of a reference index (underlying index) by a multiple of the leverage factor in the same direction.
Leverage is obtained by borrowing money and investing more in the underlying index. The borrowing cost of the leverage is supposed to be daily repo interest rates. The index is calculated by deducting the borrowing cost (return on BIST-KYD Repo (Net) Index) from the return on the underlying index.
Short indices reflect the return of a reference index (underlying index) by a multiple of the leverage factor in the opposite direction.
A short position is obtained by borrowing equities in the underlying index, selling them short, and investing the fund generated in repo.
The index is equal to the sum of the return on lending (BIST-KYD Repo (Net) Index) and the return on underlying index.
Indices are calculated from the closing values of underlying index and repo index. The base date of the indices is 1 April and base values are 1000, according to Borsa 陌stanbul.
The exchange expects the leveraged and short indices to provide the opportunity to get same or inverse index exposure in return for smaller cash positions.
The objective of leveraged indices is to reflect the return of a reference index (underlying index) by a multiple of the leverage factor in the same direction.
Leverage is obtained by borrowing money and investing more in the underlying index. The borrowing cost of the leverage is supposed to be daily repo interest rates. The index is calculated by deducting the borrowing cost (return on BIST-KYD Repo (Net) Index) from the return on the underlying index.
Short indices reflect the return of a reference index (underlying index) by a multiple of the leverage factor in the opposite direction.
A short position is obtained by borrowing equities in the underlying index, selling them short, and investing the fund generated in repo.
The index is equal to the sum of the return on lending (BIST-KYD Repo (Net) Index) and the return on underlying index.
Indices are calculated from the closing values of underlying index and repo index. The base date of the indices is 1 April and base values are 1000, according to Borsa 陌stanbul.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities 麻豆影视传媒 Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities 麻豆影视传媒 Times
