Disclaimer: Forex trading involves high risks, with the potential for substantial losses and is not suitable for all persons. The views expressed in this blogsite are those of the author(s) and do not necessarily reflect the official policy, position, or opinions of Global Forex Trading. Excerpt from: Forex Training
|  | | December 21, 2007 | | Forex trading on the currency market | One of the most popular methods of currency trading is making use of the carry trade. It can be a good way to make money, but it is also consider a risky forex trading strategy, so you could also lose quite a bit.
The carry trade works when you borrow a low yielding currency, such as the Japanese yen or the swiss franc, and use it to fund the purchase of a high yielding currency, such as the New Zealand dollar or Australian dollar. You make money on the differences in interest rate.
| Topic Tags: carry trade, currency market, currency trading, forex strategy, forex trading, forex trading strategy, Japanese yen, New Zealand dollar | |
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