A currency ETF offers exposure to a single currency or basket of currencies.
Currency ETFs allow ordinary individuals to gain exposure to the forex market through a managed fund without the burdens of placing individual trades.
Currency ETFs can be used to speculate on forex, diversify a portfolio, or hedge against currency risks.
ETFs are created and managed by financial institutions that buy and hold currencies in a fund. They then offer shares of the fund to the public on an exchange allowing you to buy and trade these shares just like stocks.
Like currency options, the limitation in trading currency ETFs is that the market isn’t open 24 hours. Also, ETFs are subject to trading commissions and other transaction costs.
Status:: #wiki/notes/mature
Plantations:: Forex
References:: Babypips