cookie

This site uses cookies to provide you with a great user experience. By visiting monetamarkets.com, you accept our cookie policy.

Allow all
top icon

This website is operated by Moneta Markets Ltd, which is not authorised or regulated by the UK Financial Conduct Authority (FCA) and does not offer or promote services to UK residents. Access to this website is restricted in the UK and the content is not intended for distribution to, or use by, any person located in the UK. If you believe you have reached this website in error, please exit the page now

Carry Trade

BBack

Back to Glossary

Description

An investment strategy where an investor borrows money in a currency with a low interest rate and invests in a currency with a higher interest rate to profit from the interest rate differential.

Carry trade involves borrowing in a currency with a low interest rate and investing in a currency with a higher rate, aiming to profit from the difference. Popular pairs for this strategy include yen crosses like GBP/JPY or NsD/JPY. This strategy requires careful consideration of currency stability and interest rate forecasts.

Start Trading in 3 Simple Steps

1
REGISTER

Open a live account and start trading in just minutes.

2
FUND

Fund your account using a wide range of funding methods.

3
TRADE

Access 1000+ instruments across all asset classes

open chat