Forex Trading: How the Carry Trade Works

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How the Carry Trade Works. How online forex trade works. Zoe Fiddes, Head of Sales at ORE Tech comments. Currencies have different interest rates which are set by the Central Banks. So when you are trading one currency against another, there is a differential in interest rates. So for instance if you're buying the Australian dollars and selling USD $ - the interest rate of the Australian dollars is a lot higher than the USD. So when you buy Australian dollars you deserve that extra interest.... Forex Trading: How the Carry Trade Works

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