🔀Lesson 4 of 7|Currency Correlations & Carry Trades

The Carry Trade Explained

6 min read

The Carry Trade Explained

Earning Interest on Currency Positions

The carry trade is one of the oldest and most well-known strategies in forex. The concept is simple: borrow in a low-interest-rate currency and invest in a high-interest-rate currency. The difference between the two interest rates — the interest rate differential — is your profit, earned daily for as long as you hold the position.

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