Forex Blog: Currency Trading News & Analysis.

June 9th 2005

An easy way to trade the Euro

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

SocialTwist Tell-a-Friend
Posted by Adam Kritzer | in Euro, Investing & Trading | No Comments »

Sponsored Offers

FREE Daily Email Updates

Enter your email address:

Delivered by FeedBurner

Have Questions? Want to Share Your Review?

Be heard. Please share your reviews today!

Neighboring Posts

© 2004 - 2018 Forex Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.