218668 Resource 119235 120646 120646 1227276559838 1227276559838 Controlled Forex Trading Terms: High Yielders

High yielding currencies on the FX market

<font size="2"><span style="font-family: verdana,arial,helvetica,sans-serif;">One of the forex trading terms that you might have come across recently is &quot;<a href="item/218575" target="_blank" title="high yielders, interest rates, carry trade, currencies, FX market, forex trading, forex trading terms, trading terms">high yielders</a>.&quot; This refers to currencies that have high interest rates attached to them.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">Interest rates are set by central banks. The higher the rate, the higher the yield. High yielders are popular because they benefit from the carry trade. Low yielding currencies are used to fund their purchase.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">During times of risk aversion, the risky process of borrowing to purchase a currency (and hoping to make money on the difference in interest rate) is shunned. However, when markets improve, traders feel more risk tolerance and high yielders are favored.</span></font><br /> 9 application/xml false carry trade currencies forex trading forex trading terms FX market high yielders interest rates trading terms Learn the FX market http://www.gftforex.com/land/index.asp?aid=446 Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.4) Gecko/2008102920 Firefox/3.0.4 127.0.0.1 127.0.0.1 mmarquit 66.182.71.19 false true false false true 119235 blog blogsite/GFTForex/web