What is forex carry trading?
Forex carry trading is a trading strategy that involves buying a high-yielding currency, such as the Czech koruna (CZK), while simultaneously selling a low-yielding currency, such as the Swiss franc (CHF), to profit from the interest rate difference between the two currencies. Carry traders essentially borrow money at the lower interest rate and invest it in the higher interest rate currency. The goal is to profit from the difference in rates without speculating on exchange rates.