Trading forex using a curency ETF
(Exchange traded fund)
Most people who trade the forex markets do so through one of the many different forex brokers that are available.
however if u r interested in taking a long term view on a particular currency pair, u do have another cost efective option and thats to buy the corresponding currency ETF exchange traded fund.
If u dont already know that what an exchange traded fund is, its it bassically just a vehicle that tracks a certain instument or group of instruments. so for example a crude oil ETF will move in acordance with the underlying crude oil price and a wheat ETF will move broadly in line with the price of wheat.
plus u can of course find plenty of currency ETFs that track various diferent currency pairs, which is obviously the foccus of this article. u can find exchange traded funds for pretty much anything these days including stocks, bonds, futures and commodities.
u can cimply log in to ur share dealing acount and trade them as part of ur all investment portfolio. these intruments can be bought and sold like ordinary stocks so u dont need to use a forex broker at all.
simillary if u r bearish about the british pound against the US dollars u could buy the coresponding USD/GBP ETF or u could buy a short ETF for the GBP/USD if this is available in ur country so for example if u think the GBP/USD pair is set to move a lot higher in the coming months and years, then u may wish to buy a GBP/USD ETF and treat it as a log term investment.
however they are of course very risky because u can also lose big amounts of money as well, and overall i would say that they are more ideally suited to short term traders rather than long term traders because of the costs involved.
u have lots of options
so if the GBP/USD were to go up by 10% for example, u would make approximately 20% instead of 10% u can even buy leveraged intruments if u so wish. these work by giving u 2* ur overall gains.
they can be bought and sold really easily and they are great for anyone looking to take a long term view on a particular forex pair. anyway the pointt i want to make is that if u think a particulars curencies pair iz undervalued, or u r confident that a specific currency is really going to strenthen is the long un, then u might like to consider buying currency EFTs for ur investment portfolio........................
(Exchange traded fund)
Most people who trade the forex markets do so through one of the many different forex brokers that are available.
however if u r interested in taking a long term view on a particular currency pair, u do have another cost efective option and thats to buy the corresponding currency ETF exchange traded fund.
If u dont already know that what an exchange traded fund is, its it bassically just a vehicle that tracks a certain instument or group of instruments. so for example a crude oil ETF will move in acordance with the underlying crude oil price and a wheat ETF will move broadly in line with the price of wheat.
plus u can of course find plenty of currency ETFs that track various diferent currency pairs, which is obviously the foccus of this article. u can find exchange traded funds for pretty much anything these days including stocks, bonds, futures and commodities.
u can cimply log in to ur share dealing acount and trade them as part of ur all investment portfolio. these intruments can be bought and sold like ordinary stocks so u dont need to use a forex broker at all.
simillary if u r bearish about the british pound against the US dollars u could buy the coresponding USD/GBP ETF or u could buy a short ETF for the GBP/USD if this is available in ur country so for example if u think the GBP/USD pair is set to move a lot higher in the coming months and years, then u may wish to buy a GBP/USD ETF and treat it as a log term investment.
however they are of course very risky because u can also lose big amounts of money as well, and overall i would say that they are more ideally suited to short term traders rather than long term traders because of the costs involved.
u have lots of options
so if the GBP/USD were to go up by 10% for example, u would make approximately 20% instead of 10% u can even buy leveraged intruments if u so wish. these work by giving u 2* ur overall gains.
they can be bought and sold really easily and they are great for anyone looking to take a long term view on a particular forex pair. anyway the pointt i want to make is that if u think a particulars curencies pair iz undervalued, or u r confident that a specific currency is really going to strenthen is the long un, then u might like to consider buying currency EFTs for ur investment portfolio........................
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