WisdomTree Long US Dollar Tree Short £3 per day (USP3 ETC) It is designed to provide investors with “leverage” exposure of the US dollar (“USD”) against the British pound (“GBP”) by tracking the MSFX Triple Long USD/GBP (TR) Index (“the Index”), which aims to Reflect three times the performance of a position in the futures contracts that are rotated daily.
WisdomTree Long USD 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 by 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 in which 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 Triple Long Index USD/GBP (TR)
The index gives 3 times “long” exposure to: (1) the US dollar relative to the British pound; For example, if the value of the US dollar were to rise relative to the British pound, the value of the index (tracked by ETC) would rise by three times the same amount. Conversely, if the US dollar decreases in value compared to the British pound, the value of the index will decrease by three times the same amount; and (ii) an interest rate differential that reflects the difference between the US dollar and British pound exchange rates.
The index is a total return indicator, which means that it also provides a safe return.
Trading USP3 ETC
WisdomTree Long US Dollar Tree Short £3 per day (USP3 ETC) A commodity traded on the European Stock Exchange is traded on the London Stock Exchange.
The London Stock Exchange is a market that a few Swedish banks and online brokers provide access to Dejero Do it.