» What is the Carry Trade?

A brief look at one of the most popular moves in currency tradingOne of the most popular moves in currency trading is the carry trade. The carry trade is popular because it is so easy to execute, and because it can be a way to make money in forex trading. However, the carry trade is also quite risky.

The carry trade works when one uses a currency with a low yield (like the Swiss franc or the Japanese yen) to fund the purchase of a currency with a higher rate (like the Australian dollar or the euro). Money is made on the difference in interest rates.

See Also

• Learn About Currency Trading
  Make money forex trading

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This entry was posted on Friday, May 9th, 2008 at 14:28 and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.