Excerpt from: Forex Training
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| 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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