Carry Trade
A carry trade is a trading strategy in the foreign exchange (forex) market where traders aim to profit from the interest rate differential between two currencies. It involves borrowing funds in a currency with a low-interest rate and using those funds to invest in a currency with a higher interest rate. The goal of a carry trade is to capture the difference in interest rates, earning the difference in interest payments while benefiting from potential currency price movements.
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- Automated teller machine
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- New fund offer
- Demand elasticity
- Interest rate risk
- Short Call
- Rho
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- Long Put
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- Implied volatility
- Bull Put Spread
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