❓ Question#forex
W
Wolf Cub
Trader · · 441 views
What is the carry trade strategy in forex?
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I have read about carry trade but do not fully understand how to implement it. Can someone explain?
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✅Best Answer
PA
Price Action Pro
Trader · 15 days ago
Carry trade means borrowing a low-interest currency (like JPY) to buy a high-interest currency. You earn the interest rate differential daily. Works in stable markets but can unwind violently in risk-off environments.
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TW
Trading Wolf
Trader · 15 days ago
Classic carry trade: Short USD/JPY (short low-rate JPY, long higher-rate USD). But this strategy requires large capital and patience — not for short-term traders.
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