What is a carry tradeWhat is a carry trade in forex trading? A carry trade is a... More in forex trading?
A carry trade is a type of trade based on the different between two countries. The carry trade process involves selling currencyWhat is currency? Currencies are the generally accepted medi... More of country with a low interest rateWhat are interest rates in trading? When one party lends mo... More and using it to buy currency from a country with a higher interestWhat is interest? In finance and trading, interest is a fe... More rate.
When the is rolled over at the end of the trading day, you have to pay a relatively low interest rate on the money you have sold, while collecting a higher interest rate on the currency you have purchased. Thus, the reason behind a carry trade is less the of the currency pairA currency pair is the price of one currency in relation to... More, but the difference between interest rates.
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