Rydex funds has filed an application with the SEC for the first currency ETF, which will trade on the NYSE under the symbol "FXE." Short for ‘exchange traded fund,’ ETFs are typically index funds which can be bought and sold much like stocks. This particular ETF will purportedly mimic the Euro, and will allow traders to place bets on the Euro as though they were trading the currency, itself. There are a few notable differences, however. ETFs are subject to certain taxes and commissions, unlike direct currency trading. In addition, traders will not be able to achieve the same amount of leverage (buying on margin). CBS Marketwatch reports:

Traditional foreign-exchange accounts…typically offer 100-to-1 leverage. With the ETF, most investors will be limited to traditional margin requirements, which at best offer a two-to-one ratio.

Read More: First Currency ETF Filled