Is it a carry trade if i buy GBD/USD in the foreign exchange market and hold the position for at least one day
January 23rd, 2008
weng asked:
I have invested on forex market for a while and frequently heard about carry trade. As i know, this term means to buy in like Euro/Yen pair to profit from the difference between the two currency’s interest rate. The diffence in this pair’s interest rate is 3.5% now, but what about the GBD/USD pair which has only o.25% in difference?
BEILMAN
I have invested on forex market for a while and frequently heard about carry trade. As i know, this term means to buy in like Euro/Yen pair to profit from the difference between the two currency’s interest rate. The diffence in this pair’s interest rate is 3.5% now, but what about the GBD/USD pair which has only o.25% in difference?
BEILMAN
For several years yen crosses are participating in bidding on pairs with higher rate than where it is being lent is technically carry trade for several weeks.