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Yen Carry Trade Back in Play
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One sure sign that some level of stability is returning to the global economy is an easing of the volatility we have seen with many of the major currency pairs. As any currency trader will tell you, volatility is a double-edged sword – it is possible to earn very attractive returns during periods of high volatility, but losses can be equally as spectacular. On the other hand, when exchange rates remain steady for a prolonged period, it may be easier to keep a lid on losses, but opportunities to profit are also limited. This is why when exchange rate volatility declines, many traders turn to the carry trade.
A carry trade strategy seeks to profit from the interest rate differential... Full Story |
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Submitted Jan 19, 2010 3:53pm
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