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THE CARRY TRADEThe carry trade is to play through the currency, the differential rate! Let me explain …. when you are long on EURUSD, you buy the euro and you sell the U.S. dollar! So you buy the euro rate for selling U.S. rates. How to choose a pair? get two currencies whose rates are far from each other. For example, take the motto short the U.S. dollar or the yen, the currency with very low rates. Currency to buy the Australian dollar may be the case ….. the Turkish lira is still more sensitive to …. brave! But all is not rosy in the sky trader …. the pair can move in the opposite direction of your trade and this is not the pips of the carry trade that minimizes your loss! So we add a bit of technical analysis as fundamental …. if Greece was not part of the Euro …. who would buy the coin? a small graph to illustrate 1 comment to THE CARRY TRADE |
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