how to trade the usdx
the u s dollar index allows traders to monitor the value of the usd compared to a basket of select currencies in a single transaction it also allows them to hedge their bets against any risks with respect to the dollar it is possible to incorporate futures or options strategies on the usdx these financial products currently trade on the new york board of trade investors can use the index to hedge general currency moves or speculate the index is also available indirectly as part of exchange traded funds etfs or mutual funds for instance the invesco db u s dollar index bullish fund uup is an etf that tracks the changes in value of the us dollar via usdx future contracts the wisdom tree bloomberg u s dollar bullish fund usdu is an actively managed etf that goes long the u s dollar against a basket of developed and emerging market currencies invesco db also offers its u s dollar index bearish fund udn which shorts the dollar gaining in value when the dollar weakens 