Fundamental Analysis

Carry Trade

Definition

Borrowing in a low-interest-rate currency and investing in a higher-yielding currency to profit from the interest rate differential.

Example

Borrowing Japanese Yen at 0.1% to buy Australian Dollar yielding 4.35% is a classic carry trade.

Explore More

Learn Trading with SignalPro

518 trading terms, 311 lessons, and AI-powered signals — all free to start.

Download Free