Carry trade
Borrowing funds in a currency with low interest rates such as the Japanese Yen or Swiss Franc and investing them in assets denominated in a high interest rate currency, earning the interest rate differential.
This one is not written up yet
The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.
Where this is taught
Free preparation for NISM Series I← All terms