interest rate differential (IRD)
The difference between the return achieved by depositing in one currency versus the money paid for borrowing in another. forex traders use the interest rate differential and the concept of interest parity to determine forward forex rates and to compute forex swaps. It also determines the amount that an investor using the Carry Trade can profit by if the exchange rate remains steady.
Browse by Subjects
interest rate differential (IRD)
Dollar Carry Trade
covered margin
indexed currency borrowings
See All Related Terms »

civil action
enterprise zone
Near Option
owner occupier
U.S. Treasury Bill