Carry trade
Carry-Trade
Definition
Borrowing in a low-interest currency to invest in a higher-interest one, profiting from the rate gap.
Other definitions
- A strategy of borrowing a low-yield currency to buy a higher-yield one and earn the rate difference.
- Borrowing a low-yield currency to buy a high-yield one, profiting from the interest rate difference.
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Apply it in FX CURIO
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