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1. • • Higher interest rates keep domestic savings onshore in the local currency. They also entice capital from yield-starved foreigners. This is called the carry trade—and it is coming back.
     www.economist.com › finance-and-economics › 2021/07/03

     The return of the carry trade - The Economist

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   What is a carry trade?

   • A carry trade is a trading strategy that involves borrowing at a low- interest rate and investing in an asset that provides a higher rate of return. A carry trade is typically based on borrowing in a low-interest rate currency and converting the borrowed amount into another currency.

   Carry Trade: Definition, How It Works, Example, and Risks - Investopedia

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   What is a currency carry trade?

   • A currency carry trade is a strategy that involves borrowing from a lower interest rate currency to fund the purchase of a currency that provides a rate. A trader uses this strategy in an attempt to capture the difference between the rates, which can be substantial depending on the amount of leverage used.

   Currency Carry Trades 101 - Investopedia

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   How do carry trades work?

   • The most popular carry trades involve buying currency pairs like the AUD/JPY and the NZD/JPY, since these have interest rate spreads that are very high. As for the mechanics, a trader stands to make a profit of the difference in the interest rates of the two countries as long as the exchange rate between the currencies does not change.

   Currency Carry Trade: Definition as Trading Strategy and Example

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   What is a carry trade in forex?

   • 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. *Note: This article was last updated in October 2023.*

   How to use the currency carry trade strategy - FOREX.com

   www.forex.com/en-us/news-and-analysis/currency-carry-trades-explained/

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3. www.investopedia.com › carry-trade-definition-4682656Carry Trade: Definition, How It Works, Example, and Risks

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   Jan 1, 2022 · A carry trade is a trading strategy that involves borrowing at a low-interest rate and re-investing in a currency or financial product with a higher rate of return. Because of the risks...

4. www.forex.com › currency-carry-trades-explainedHow to use the currency carry trade strategy - FOREX.com

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   Oct 25, 2022 · Carry trades are a forex trading strategy that seeks to capitalize from the interest rate differential between two currencies within a currency pair. Also known as a forex currency trade or carry-on trade, this strategy can apply to both long and short trades given the interest rate differential is strong.

   • Author: Ryan Thaxton

   • Occupation: Financial Writer

5. Videos

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     What is a Carry Trade? How Does It Work?

     Jun 24, 2011

     46.3K Views

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     Can carry trade carry on?

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     4:03

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     Carry trade basics | Money, banking and central banks | Finance & Capital Markets | Khan Academy

     Aug 26, 2011

     83.6K Views

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6. www.quantifiedstrategies.com › carry-trade-strategyCarry Trade Strategy: Example, Rules, Backtest, Analysis ...

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   Apr 2, 2024 · A carry trade strategy involves borrowing at a low-interest rate currency and converting the borrowed amount into another currency with a higher interest rate to invest in an asset that provides a higher rate of return. If you are active in the financial markets, you may have heard of carry trade, especially in currency trading.

7. www.ig.com › us › trading-strategiesBeginner's guide to the carry trade | IG US

   www.ig.com › us › trading-strategies

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   The carry trade is a popular strategy that attempts to profit from interest rate differentials between two regions by borrowing, or shorting, a currency with low interest rates to fund, or buy, a currency with a higher interest rate. Learn more about the carry trade at IG Academy.

8. fxview.com › global › learnCarry Trade in Trading:7 Key Risks to Consider | Fxview

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   Oct 11, 2023 · In forex, a carry trade happens when a trader borrows money in a currency with low interest and invests it in a currency with higher interest. The trader then may profit from the difference between the two rates. How does Carry Trade in trading strategy work? Imagine a seesaw.