return or cost of holding an asset
Wikipedia
Carry (investment) - Wikipedia
August 27, 2025 - The currency carry trade is an uncovered interest arbitrage. The term carry trade, without further modification, refers to currency carry trade: investors borrow low-yielding currencies and lend (invest in) high-yielding currencies.
Investopedia
What is Carry Trade? Definition, Example & Risks Explained
August 5, 2024 - A carry trade is any strategy where an investor borrows capital at a lower interest rate to invest in assets with potentially higher returns. It's best known for its use in foreign exchange (forex or FX) markets, where traders borrow in a ...
Is it possible to mount while carrying a trade pack?
r/blackdesertonline • 6 • September 4, 2015
Is it possible to mount while carrying a trade pack?
6
• September 4, 2015
Striker More on reddit.com
Any help in understanding a carry trade?
r/interactivebrokers • 20 • September 28, 2024
Any help in understanding a carry trade?
20
• September 28, 2024That’s the opposite of a carry trade. A carry trade would be borrowing in the lower yielding currency and buying/lending in the higher yielding one. For example, you borrow in JPY and use that to buy USD denominated bonds. That would be a carry trade. You have to understand that it’s pretty risky, though. If the JPY rises in value relative to the USD, it could go very wrong for you. Don’t get involved in this kind of trade until you’ve studied a lot and specially learn how to manage risk. You’re nowhere near there. More on reddit.com
The Danger of the Carry Trade
r/Forex • 25 • March 21, 2019
The Danger of the Carry Trade
25
• March 21, 2019I'm a novice and this was a good read... What strategies are there for longterm investment better than the Carry trade?
Also how do you know the interest differentials of different currencies on the Oanda platform? (When i say novice i mean really Novice lol.)
More on reddit.comLevel 3- Carry Trade
r/CFA • 11 • January 20, 2025
Level 3- Carry Trade
11
• January 20, 2025I just did this mock. I believe it asks to construct a “negative” carry trade between MXN/USD rather than just construct a carry trade. More on reddit.com
Videos
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Chicago Booth Review
Carry Trading: Not Just for Currencies | Chicago Booth Review
In finance, carry typically refers to currency trades in which money is borrowed in a currency with low interest rates and invested somewhere else that has higher rates of return.
World Economic Forum
What are carry trades and how do they impact global markets? | World Economic Forum
A carry trade is an investment strategy that involves borrowing money in a currency with low interest rates and using it to invest in stock and bonds based on a currency with higher interest rates, the Associated Press (AP) explains.
Reserve Bank of Australia
Japanese Retail Investors and the Carry Trade
commercial (or ‘speculative’) traders on the CME. These speculative traders also appear to follow · a carry trade strategy, displaying a strong tendency to short low-yielding currencies and take
UCSD Rady School
The Currency Carry Trade: Is It Still Viable?
The currency carry trade is defined by investing in a high-yielding currency, funded from a lower-yield currency.
FOREX.com
How to Use The Currency Carry Trade Strategy - FOREX.com US
April 10, 2025 - At face value, forex currency trades may seem like a low-risk strategy, but there are pitfalls you should be aware of. For example, a minor depreciation of the target currency can be enough to quickly erase any gains from the interest rate differential. Carry trades are usually most effective when the currencies you’re using experience low volatility.
The Hedge Fund Journal
The Carry Trade · The Hedge Fund Journal
Currently I have another carry position, long the Indian Rupee against the Chinese Yuan through non-deliverable forwards. Apart from a fundamental rationale for the trade, receiving a 7% yield pickup between two of the world’s fastest growing economies seems like a good opportunity and it is also partially hedged.
Yahoo!
What is the “Yen Carry Trade” and Why Did It Blow Up Markets?
September 16, 2024 - If it is, they make money but if they’re wrong then they have to exit the trade (i.e. cut their losses). Simply put, a “carry trade” involves borrowing money in a currency that has a super low interest rate, like Japan’s.
FX Markets
Hedge funds keep a toe in HKD carry trade despite rate rise - FX Markets
1 month ago - “We think the fast money [hedge funds] are still running some sort of long [US] dollar carry trade,” says a senior Hong Kong-based FX and rates trader at a
FOREX.com
What is a Carry Trade? - Carry Trade Definition - FOREX.com US
A carry trade is a strategy that involves borrowing at a low-interest rate and investing in an asset that provides a higher rate of return.
TastyFX
What is a Carry Trade & How Does it Work?
June 6, 2025 - The carry trade strategy revolves around borrowing funds in a currency or asset with a low interest rate and using those funds to invest in a higher-yielding currency or asset. Imagine an investor borrows in the Japanese yen currency, which ...
Treasury Management International
Understanding Carry Trades and How They Can Be Used: A Guide for CFOs and Treasurers | Treasury Management International
August 27, 2024 - Incorporating carry trades into corporate risk management can offer significant benefits, including optimising cash management, hedging FX risks, and reducing borrowing costs. However, it requires a strategic approach, robust risk assessment, and continuous monitoring to handle the associated risks effectively.
Investopedia
Currency Carry Trade: Definition As Trading Strategy and Example
September 24, 2024 - A currency carry trade is a strategy that involves using a high-yielding currency to fund a transaction with a low-yielding currency.
ScienceDirect
The out-of-sample performance of carry trades - ScienceDirect
March 7, 2024 - The carry trade strategy systematically exploits interest rate differentials between countries by selling low-interest-rate currencies and acquiring high-interest-rate currencies. This strategy inherently carries risk, particularly price crash risk (Jurek (2014), Chernov et al.
Kellogg School of Management
Carry Trade and Momentum in Currency Markets April 2011 Craig Burnside
We estimate z" and ) for the carry trade using currency option data from J.P. Morgan for · ten major currencies over the period 1995—2009. As in Burnside et al. (2011), we assume that · in the disaster state all of the individual currency carry trades lose money.
European Central Bank
Working Paper Series Carry trades and monetary conditions
negative from 2008 onwards. Carry trade portfolio average net returns for
Bank for International Settlements
Sizing up carry trades in BIS statistics
September 16, 2024 - A carry trade is a leveraged cross-currency position designed to take advantage of interest rate differentials and low volatility. The strategy involves borrowing funds at a low interest rate in one currency (the funding currency) and buying ...
Wellington Management
The yen carry trade unwind | Wellington US Institutional
September 9, 2024 - One of the most interesting aspects of the event is how unusual it was. Typically, currency carry trades refer to situations where investors are long high-carry currencies like those from emerging markets (EMs) and short funding currencies from developed markets — including the Japanese yen.
NBER
The Carry Trade: Risks and Drawdowns
Founded in 1920, the NBER is a private, non-profit, non-partisan organization dedicated to conducting economic research and to disseminating research findings among academics, public policy makers, and business professionals.