LeoGlossary: Carry Trade
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9 months ago
Sep 17 2022 11:43 pm- 1 minutes read
A trading strategy of borrowing at a low interest rate and investing in an asset with a higher rate of return.
This is typically using a low-interest rate currency and converting it to another currency. Once the currency is acquired, it could be deposited at a higher rate.
There is also the option of putting the second currency into stocks, bonds, or real estate.
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