Introduction to the Carry Trade
In this article we’ll cover a non-directional trading strategy that has been popular among banks and hedge funds, yet is lesser known among retail traders.
Carry Trade
Exotic Carry Trade Strategies
The Carry Trade strategy in forex trading involves buying a high yielding currency and selling a lower yielding currency. In doing this you will capture the interest rate differential. For example if the New Zealand Dollar has an interest rate of xx and the Japanese Yen has an interest rate of xx. If an investor …