WisdomTree Long JPY Short EUR 3 times per day (EJP3 ETC) It is designed to provide investors with “leverage” exposure of the Japanese yen (“JPY”) against the euro (“EUR”) by tracking the MSFX Triple Long Japanese Yen/Euro (TR) Index (“the Index”), which aims to reflect the performance of a position with three times in daily traded futures contracts.
WisdomTree Long JPY Short EUR 3x per day It is an exchange-traded currency (“ETC”). Its securities can be created and redeemed at the request of authorized participants and traded on the stock exchange just like shares in a company.
ETC achieves exposure to the index by entering into unfunded swaps with the counterparty. There are no cash payments from the issuer to the counterparty when creating an unfunded swap. However, daily cash payments are made between the issuer and the counterparty to reflect movements in the value of the index.
Separately, the issuer uses the cash it holds to purchase collateral acceptable to the counterparty under a daily reverse repurchase agreement (“reverse repurchase”), an agreement whereby the counterparty agrees to repurchase such eligible collateral from the issuer on the next day. Forensic security is maintained by the trustee in the guardianship account.
MSFXSM JPY/Euro Trio (TR)
The indicator gives a 3x “long” exposure of the following:
(me) JPY to EUR. For example, if the value of the Japanese yen were to rise against the euro, the value of the index (which ETC tracks) would rise by three times the same amount. Conversely, if the value of the Japanese yen decreases against the euro, the value of the index will decrease by three times the same value; And
(2) The interest rate differential that reflects the difference between the exchange rates of the Japanese yen and the euro.
The index is a total return indicator, which means that it also provides a safe return.
Trading EJP3 ETC
WisdomTree Long JPY Short EUR 3 times per day (EJP3 ETC) It is a stock exchange-traded European currency that is traded on Euronext.
Euronext is a marketplace that a few Swedish banks and online brokers provide access to Dejero Do it.
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