Lecture 13 (Module 3). Carry Trade
Advanced strategy, liked by one traders, hated by another
Thandiwe Mbeki
Published · Updated
What Is a Carry Trade?
A carry trade goes long a currency with a relatively high interest rate while simultaneously going short a currency with a relatively low interest rate, aiming to earn the interest rate differential between them - accrued daily as a positive swap on top of any favourable price movement.
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