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Currency Carry Trade: What is it and how does it work?

- Reviewed by James Stanley, Nov. 24, 2021 A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. This is also known as “rollover” and forms an integral part of a carry trade strategy. Traders gravitate towards this strategy in the hope of collecting daily interest payments over and above any currency appreciation from the actual trade. This article explains FX carry trade


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