The Carry Trade Explained

A carry trade involves borrowing a currency with a low interest rate to buy a currency with a higher interest rate, aiming to capture the 'swap' or 'rollover' interest difference.

Risks

If the pair moves against you significantly, the capital loss will far exceed the small interest rate gains.

FAQ

Is carry trade for day traders?

No, it's typically a long-term position strategy.

Where do I see swap rates?

In your broker's contract specifications.

Does the MixFunded program allow carry trades?

Yes, but be aware of our maximum drawdown limits.

Are there fees for holding?

Yes, be sure to check your broker's swap policies.