A carry trade involves borrowing funds in a currency with a low interest rate and investing them in a higher-yielding one. This strategy profits from the interest rate differential. It is commonly used by hedge funds and institutional investors, who benefit from potential returns if exchange rates remain stable or move favorably.
Get alerts when this topic surges in newsletters. Free to start.
Sign up freeExplore more trends:Trending Topics ·AI Trends ·Business Trends ·Finance Trends ·Technology Trends