Caplease explain carry trade

Please how do i carry trade?

First you have to type - carry trade - into the search bar up top and do a little reading.

Second google - investopedia carry trade - do a little more reading

Third come back and state what you understand and ask questions about what is still confusing to you.

Trust me. This is the best approach to answering your question.

Plus I have misplaced the BPS.

Looking forward to what you find and then discussing further,

KC

Maybe you can also check this out for the basics. :smiley: Haha. Good luck!

Sell USDRUB, USDMXN, USDZAR for long-term and earn swaps daily. That’s it.

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After selling what next

Your broker will credit you everyday with swaps. Google swaps to learn what is it. It’s a kind of overnight interest that broker pays you if you hold a high yielding currencies like Peso, Ruble, Rand etc.

But you should understand that there is a risk - risk that after buying Ruble it will start to depreciate leaving you with negative P/L. Thus you will earn swaps, but lose because of depreciation. But often after serious decline USDRUB, USDMXN rates tend to decline because of carry traders seeking for high returns.