Interest Rate Carry

The income or cost associated with keeping a foreign exchange position overnight. This is derived when the currency pairs in the position have different interest rates for the same period of time. The interest rate carry is the basis of the carry trade, where traders look for currency pairs that feature a high interest rate yielding currency and another with a lower interest rate.

By |2018-09-04T14:33:20+00:00September 4th, 2018|0 Comments

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