Carry trade in Forex
A clear definition of Carry trade, with practical context for reading markets and making better trading decisions.
Definition
A strategy that seeks to benefit from the interest-rate difference between two currencies, while accepting exchange-rate risk. The swap is only one part of the outcome.
Practical forex example
Buying a higher-yielding currency against a lower-yielding one is a carry-trade idea.
Why Carry trade matters
Understanding Carry trade helps traders interpret market information, plan decisions, and manage risk with more context.
Related forex terms
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