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  1. #1
    Banned Array
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    What is a currency carry trade?

    What is a currency carry trade?

  2. #2
    Bronze Member Array capsmart's Avatar
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    Aug 2011
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    I agree with mdenamul but as a trader when you open a position and keep it open at night (after gmt midnight) then you either pay or receive interest rate. So as an example, if you go long (buy) a eur/aud position you will have to pay interest, if you go short (sell) eur/aud you will get interest. The reason for making money out of the second position is that the interest rate you collect for the AUD you bought is higher than the interest rate you pay for the eur. Those amounts are different per broker.

  3. #3
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    Mar 2013
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    It's basically when you sell a certain currency with a low interest rate and use the funds to buy another current to get a higher interest rate. You attempt to capture the difference between the rates. hope this helps

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