Use ETNs to invest in dollars, Bitcoins etc.You would like to focus on investing in currencies or the volatility spread for a security? Then you should take a closer look at ETNs.
Three reasons for ETNs
- Using ETNs, investments in niche markets are possible.
- Using short products, you can lock into falling prices.
- Via Börse Stuttgart all ETNs can be flexibly treated from 8 a.m. to 10 p.m.
Tops & Flops
ETNs for special investments
Exchange Traded Notes are securities that track an underlying asset in a ratio of 1-to-1 or with a leverage. With ETNs you can try and exploit the trend for currencies, interest and equity futures or the volatility. This is possible in both rising and falling markets. And you can invest in cryptocurrencies: At Börse Stuttgart, for example, you can trade ETNs in Bitcoin and Ethereum. It bears mentioning here that the value of ETNs with more exotic underlying assets often fluctuates strongly.
Legally speaking, ETNs are debentures. As an investor you therefore bear the issuer’s credit risk, too. Some securities are collateralized, however, and this reduces the issuer risk. Ancillary costs for these products is relatively low through passive management.