Trading Vehicles, Stock, ETFs, Futures, and Forex 37

FIGURE 1.16
RealTick graphics used with permission of Townsend Analytics, LTD.

ing simple to sophisticated trading strategies integrating options as stated

earlier. With market liquidity and market transparency, traders using ETFs
can buy or sell at current market values rather than at assigned market val-
ues based on the close, as is the case when investing in mutual funds. In
fact, some mutual funds may not be fully vested in stocks at a given time.
This means your cash may not be working at 100 percent capacity.

Currency ETFs
This book will also reveal more about the forex markets or foreign cur-
rency trading. And on that subject, there was a new ETF that may appeal to
those who want to participate in currency investing but have neither the
time capacity nor the desire for excessive leverage exposure. Rydex In-
vestments launched the first-ever currency-based exchange-traded prod-
uct back in December 2005.
The Euro Currency Trust (FXE) is an ETF that tracks the price of the
euro, with each share representing about 100 euros plus accrued interest.
Shares of the trust, called “Euro Currency shares,” trade on the New York