mine grandparents in Canada room contemplating shorting the Euro by buying ETFs, there is no converting any currency, or offering anything short. They recognize of 2 methods:

Buying place on a normal lengthy ETF like CurrencyShares Euro to trust (NYSE: FXE).

You are watching: How to short the euro

Buying leveraged ETFs like ProShares Ultra Euro (NYSE: ULE), ProShares UltraShort Euro ETF (NYSE: EUO), and also Market Vectors twin Short Euro ETN (NYSE: DDR)­

Can someone please contrast these 2 methods? i beg your pardon is riskier? They understand that choices can expire worthless.

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asked may 18 "20 in ~ 5:45
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2 answers 2

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DDR seems to have ceased trade in April 2020.

Note that these to be unsecured blame securities approve by MorganStanley. Once you buy one ETN approve by Morgan Stanley, you need to be confident around the credit-worthiness that Morgan Stanley. If Morgan Stanley go bust, you can lose your investment regardless the what actually happens to the actual USD/EUR exchange rate.

As you can see, both ULE and EUO only claim to track the motion of the Euro over a period of one day. They room not designed to be held for much more than one day, and you may incur losses because that doing so.

If your grandparents want to organize for a duration greater than one day, they could:

Find a reputable forex broker that permits shorting the USD/EUR pair, or

Buy place on a normal long ETF the track USD/EUR movements, or

Buy puts on USD/EUR futures, or

Enter right into a USD/EUR futures contract.

Just make sure you know what you are acquiring into as soon as playing through shorts and/or derivatives.

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edited may 18 "20 at 8:13
answered may 18 "20 at 8:07

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Thanks. I don't think girlfriend answered around FXE?
might 19 "20 at 1:41
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If you are betting the EUR USD pair, the many transparent pricing is the FX alternatives at

Philadelphia share Exchange (10,000 EUR every contract)https://www.nasdaqtrader.com/Micro.aspx?id=phlxwcoproductspecs#eu

Chicago Mercantile Exchange (125,000 EUR per contract)https://www.cmegroup.com/trading/fx/g10/euro-fx_contractSpecs_options.html?optionProductId=8116#optionProductId=8116

Neither addresses her base thedesigningfairy.com of Canadian Dollars.

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answered may 18 "20 in ~ 8:16

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Why not even FXE?
may 19 "20 at 2:14
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