How can I take a short position against the British Pound? Are there ETFs that go up when the rate goes down?

Question

I know of one that goes up when the Pound goes up but I'd like the value to go up when the Pound goes down. (I'm not able to short sell in my account.) Is there anything else I can do?

(I want to do this to hedge something I have in Pounds, not to speculate.)

Answer 1

Sell £ IG Index spread bet. Any currency against? Buy the other currency.

I am not sure there could be an ETF. What would it track? Maybe all the major currencies except sterling. Doesn't seem possible. Don't forget your time scale either. Also FX options? I can only suggest have a look at IG Index. They do a bungee FX as well You will get an axplanation of this on their website or even mine: http://www.shareworld.co.uk

Answer 2

When one considers the value of the British Pound, one has to consider its value in relation to some other currency.  Which currency did you have in mind?  You can buy an index fund that invests in that particular currency.  For example

FXE euros

FXY yen

FXF Swiss francs

FXA Australian dollar

FXC Canadian dollar

Interestingly, there is not one to invest in the U S dollar explicitly.  You can invest in SHY short term U S government bond fund.

Answer 3

get a forex account, and sell gbg/x*x where x*x is the currency you think the pound will decrease in value against.

good places for forex accounts are

http://www.ibfx.com

and others.

a mini account will let you trade 200:1 margin and start with just $250usd.