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Carry Trade

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Back from the dead? The revival of the FX carry trade

As inflation rises to multi-decade highs, some central banks are once again raising interest rates aggressively, suggesting that the carry trade could come back from the dead in the coming months.

How to use the currency carry trade strategy

A carry trade is a trading strategy that involves borrowing a low-yield currency and investing in a high-yielding asset to exploit the interest rate differential. Carry trades are most common in forex trading with traders borrowing the low interest Japanese yen to buy higher interest currencies. Learn what currency pairs work best and how to execute the strategy yourself in our full guide.

February 23, 2022 02:36 PM

    How the Carry Trade Could Explain EURUSD’s Counterintuitive Moves…and Why it Matters

    Traders the world over have been surprised by the relative resilience of the euro over the last few weeks, despite growing concerns that Greece may […]

    June 24, 2015 03:47 PM

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