LeoGlossary: Carry Trade

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9 months ago - 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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