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What's a Carry Trade?
Carry trades are one of those strategies that sounds too simplistic to be true, actually works most of the time, and sometimes blows up for reasons that are often more confusing than the fact that it worked in the first place. The basic idea of a carry trade is to make a list of currencies, ranked by yield. Borrow one of the lower-yielding ones, use it to invest in the higher-yielding one, and... that's the trade. If you look at interest rate differentials by currency, your first instinct might be that you earn 5.5% per year if you borrow yen at 0.25%, convert that money into the Polish zloty, and lend it out in ... (full story)
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KareemAliFx
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Master your mind. Master Trading.
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