Carry Trade
A currency trading strategy in which the trader borrows an amount of a currency with a given interest rate, and lends out this amount in a different currency with a higher interest rate. A carry trade generates profit if the interest revenue from lending the second currency exceeds the financing cost of the loan.
Browse by Subjects
currency carry trade
Dollar Carry Trade
interest rate differential (IRD)
indexed currency borrowings
Carry Grid
See All Related Terms »

illegally
uncertainty
net salary
EAA
reserve currency