Level I - Introduction to Forex Trading
Level II - Learn Forex Analysis
Level III - Learn Forex Strategies

30. Learn The Carry Trade Strategy


Day Trading – Bollinger Band Failed Breakout Strategy 

What you will learn

  • What is Carry trade strategy and how to use it? 
  • What are the best currency pairs for a carry trade? 
  • Where to find the Interest Rates data?  
  • Examples of Interest Rate Calculation 


In this class, we are going to discuss the Carry Trade Strategy. You will learn how a carry trade works, some possible trading strategies you can employ, as well as its benefits and risks. 

In Forex, carry trading is the act of borrowing a low yielding currency and buying a high yielding currency to profit from the difference in interest rates. Financial operators commonly use this process since they prefer borrowing money instead of investing their own. 

A carry trade typically involves a medium to long-term position, and its not meant for day trading. The carry trade offers the trader both interest income as well as the potential upside on price appreciation. However, keep in mind that the carry trade does have its own inherent risks, which require careful position sizing and risk management. 

Lesson Content