Your favored currency ETF for protection vs dollar decline

Discussion in 'ETFs' started by Option Trader, Mar 30, 2008.

  1. Hello my fellow ET members,

    What currency ETF would you recoomend most for protection versus dollar decline (& profitability).

  2. Currency ETF's are the *dumbest* etf's ever thought of. Clearly designed for dumb newbies/bag holders which is why they have no volume. Why not just trade whatever currency pair you want through a broker like IB and put the rest of your money to work in something else?
  3. Here's the list I found of ETF's:

    What currency pairs would you recommend instead?
  4. I'm not recommending any currency. All I saying was that currency *etf's* are a BAD way to trade currencies. Why? Because currencies by their very nature move very little % wise over time. You need *some* leverage, certainly NOT 50-100x like the bucket shops but some leverage like 5-10x in order to come up with a meaningful trade. Unless you think the dollar will be worth 50% next year.

  5. Daal


    currency etfs are bad but it might make sense to use their options
  6. Thank you both for your input about currency ETF's & options.
  7. Klamath


    So a currency ETF just buys a foreign currency and piles it over in the corner or something? Why don't they at least put it in a money market equivilant of that currency?
  8. They are useful for IRAs or 401k plans where you are restricted to funds. I believe Rydex has a weak dollar mutual fund that offers two times leverage. Basically, they are a short term debt type alternative.
  9. OT, you're all class
  10. #10     Mar 31, 2008