Carry Trade
Definition
A strategy of borrowing in a low-interest-rate currency to invest in a higher-interest-rate currency, profiting from the interest rate differential.
Example
Borrow JPY at 0% and buy AUD at 4% for carry trade profit. Spread Category: Forex Definition: The difference between the bid (sell) and ask (buy) price quoted by a broker. Represents the transaction cost. Related Ter
Frequently Asked Question
What is Carry Trade in trading?
A strategy of borrowing in a low-interest-rate currency to invest in a higher-interest-rate currency, profiting from the interest rate differential.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.