Foreign exchange market Greece is a flourishing market with good potentialities. The forex market of Greece is used for exchange of currencies. This market provides liquidity to the currency traders. This is a global market and the market regulatory authorities are different in different countries. The foreign exchange market Greece is regulated by the Central Bank of Greece.
This bank is the prime authority of the country to maintain the value of the national currency and to take reformatory measures when the value of the currency goes down. The main participants of the foreign exchange market Greece are the commercial banks, investment banks, global money managers, brokers, registered dealers and the option traders.
The rate of currency exchange is determined according to the demand of the particular currency in the market. At the same time, the fluctuations in the market also play a major role in the process of determining the currency exchange rate in Greece.
The main purpose of the Greece currency exchange market is to purchase and sell different currencies. As per the modern trends of the forex market, the number of currency traders is rising steadily in the currency market of Greece.
Although the market faces some temporary fluctuations at different times, the overall picture of the Greece currency market is quite satisfactory.
The trading in the foreign exchange market in Greece is done through the following financial instruments:
In forward transaction the actual exchange of currency is done on any future date but the buyer and the seller agree on a particular exchange rate for a particular currency prior to the actual exchange.
Swap is the most popular type of the forward transaction but no particular exchange has been set for the purpose. Here, two parties are involved in the currency exchange for a limited time after which the transactions are reversed.
The futures is a type of forward transaction and the trading is done on the futures exchanges. The contract length for the futures normally extends upto 3 months.
Options is derivative and provides the owner of derivatives the right to buy any currency at a pre-fixed exchange rate. At the same time the option-holder is not bound to buy or sell the currency and the trade depends on the desire of the option-holder. Spot represents direct exchange within two currencies. This is a two-day delivery transaction, which involves maximum cash.