FX
CURIO

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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