What is repo? What are its features?
Repo is an agreement in which one party sells a fixed income security and agrees to repurchase it after a specified period of time under predetermined conditions. For the party who purchases the security and agrees to resell it, the transaction is called a reverse repo.
Essentially, repo is an investment instrument that banks use to obtain short-term funds, individuals use to invest their excess cash and legal entities use to minimize the cost of capital. The term “Reverse Repo” defines the transaction from the lender's perspective.
In the case that, at the order date, the bank's repo rate is higher than the minimum repo rate that you enter, your order will be executed at the bank's repo rate in effect, otherwise your order will not be executed. In the case that you enter 0 (Zero) as the minimum rate, the order will be executed at the bank's repo rate in effect at the order date.
- You can determine for how many days, weeks or months you will invest your money and thus manage your cash flow.
- Having a current account is sufficient to carry out repo transactions.
- Earnings you secure through repo transactions are net gains.
- You can place your repo orders on weekdays between the hours of 10:00 – 14:00.
- The lower limit for conducting repo transactions through our branches is TL 5,000.
- The lower limit for conducting repo transactions via Garanti Paramatik, Garanti Online Banking and 444 0 333 is TL 250.
You may place your buy orders between the hours of 09:00 and 18:00 on the announced demand collection days, and until 12:00 on the last day.
While orders for only 1 or 2 sessions can be placed in the buy/sell step, you can place orders for a minimum of 3 sessions in the morning session, and a minimum of 2 sessions in the afternoon session, with a maximum of up to 40 sessions.