{"id":10781,"date":"2025-01-29T12:01:55","date_gmt":"2025-01-29T12:01:55","guid":{"rendered":"https:\/\/unitedpips.com\/knowledgebase\/resources\/topic-index\/learn-forex\/what-is-carry-trading\/"},"modified":"2025-01-29T12:02:41","modified_gmt":"2025-01-29T12:02:41","slug":"what-is-carry-trading","status":"publish","type":"docs","link":"https:\/\/unitedpips.com\/knowledgebase\/docs\/topic-index\/learn-forex\/what-is-carry-trading\/","title":{"rendered":"What Is Carry Trading?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"10781\" class=\"elementor elementor-10781\" data-elementor-post-type=\"docs\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5c09757 e-flex e-con-boxed e-con e-parent\" data-id=\"5c09757\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-b87f20e elementor-widget elementor-widget-text-editor\" data-id=\"b87f20e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>Carry trading<\/strong> is a forex strategy where traders <strong>buy a high-interest currency<\/strong> while <strong>selling a low-interest currency<\/strong>, earning the <strong>interest rate differential<\/strong> between the two.<\/p><h3><strong>How It Works:<\/strong><\/h3><ul><li>You <strong>go long<\/strong> on a currency with a <strong>higher interest rate<\/strong> and <strong>short<\/strong> one with a <strong>lower interest rate<\/strong>.<\/li><li>The broker <strong>credits<\/strong> you the difference daily, as long as the rate differential is positive.<\/li><\/ul><h3><strong>Example:<\/strong><\/h3><p>If <strong>NZD<\/strong> has a <strong>4% interest rate<\/strong> and <strong>USD<\/strong> has <strong>2%<\/strong>, buying <strong>NZD\/USD<\/strong> allows you to earn the <strong>2% difference daily<\/strong>, which can accumulate over time.<\/p><p>Carry trading is most effective in <strong>stable market conditions<\/strong>, where interest rate differentials remain consistent.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Carry trading is a forex strategy where traders buy a high-interest currency while selling a low-interest currency, earning the interest rate differential between the two. How It Works: You go long on a currency with a higher interest rate and short one with a lower interest rate. The broker credits you the difference daily, as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":9546,"menu_order":25,"comment_status":"open","ping_status":"closed","template":"","doc_tag":[],"class_list":["post-10781","docs","type-docs","status-publish","hentry","no-post-thumbnail"],"acf":[],"_links":{"self":[{"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs\/10781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/comments?post=10781"}],"version-history":[{"count":4,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs\/10781\/revisions"}],"predecessor-version":[{"id":10785,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs\/10781\/revisions\/10785"}],"up":[{"embeddable":true,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/docs\/9546"}],"wp:attachment":[{"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/media?parent=10781"}],"wp:term":[{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/unitedpips.com\/knowledgebase\/wp-json\/wp\/v2\/doc_tag?post=10781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}