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The "Carry Trade" is the application of cheap borroweded funds, utilised to buy a higher yielding asset, thus, through time, the strategy has a "Positive Carry". An example would be the borrowing of cheap Japanese Yen at an interest rate of 1% and investing those Yen into a higher yielding currency, such as Australian Dollars with an interest rate at 8%. Through time, assuming your asset retains its value, you will receive a net return on 7% for every dollar borrowed. This was the classic trade in the 2000s into the Liquidity Crisis (related, but different to the Credit Crisis) in the second half of 2008. The inherent problem with the strategy is that it assumes that the asset invested in will retain or gain value relative to the currency borrowed. In July of 2008, 1 Australian Dollar bought just shy of 105 Yen, so the strategy would require borrowing 105 Yen for the aquisition of A$1. By October, your A$1 was only worth 56 Yen and while still high yielding, you had just over half of the value to repay your loan.
What else can I help you with?
How do you check stock prices?
Check the daily finance news paper it would carry the prices of yesterdays trade close. Check the exchange website and it would carry the prices of all stocks listed in it. for ex. nseindia.com would contain the up to date prices of all the stocks listed in it. Or alternately you can check your DEMAT/Trading account and it would also show you the stock prices.
Can you explain how to bust a trade?
"Busting a trade" refers to canceling or reversing a trade that has been made. This can happen if there was an error in the trade or if it violates trading rules. To bust a trade, the trader must contact their broker or exchange and request to cancel the trade. The broker or exchange will then review the request and determine if the trade can be canceled.
What are inter regional trade?
Interregional trade is trade that takes place between two or more regions.
What is intra firm Trade?
Intrafirm trade is the trade between two subsidiaries of a company. In such a case, normal trade laws do not apply, and can therefore occur without any hinderance.
What instrument are used in trade credit?
instruments in trade credit
What is Carry Trade used for in investing?
The carry of an asset is either the return obtained from holding it or the cost of holding it. A carry trade is when one buys or sells assets based on their carry.
What does tools of the trade mean?
tools of the trade simply means the tools a tradesman would typically use to carry out his trade, for example the trade of carpenter would typically use, a saw, a chisel and a square to carry out his trade.
Were did new England ships sail to carry on trade?
Triangular trade
What did caravans carry from west Africa for trade?
b
How did Phoenicians use imports?
For consumption or carry-trade.
What commercial activity did the Phoenicians engage in?
Carry trade.
What do camels carry to trade in the Arabian desert?
salt and ivory
What is dollar carry trade?
The dollar carry trade It involves people and institutions borrowing money from the United States at low interest rate. They then deposit it in a currency that has a higher rate of interest.
How did Egyptians and Nubian's use Nile river?
Carry goods for trade
What are three characteristics a Phoenician sea trade might need to possess?
Cargo ships to carry on the trade of its own exports and imports, and the carry-trade it developed between other areas. Warships to protect the cargo trade. Permanent local trading stations from which to carry out this trade as it expanded.
What us a 5 letter word meaning sell?
trade, stock, carry
When you trade Pokemon from Platinum to Soul-Silver do your Ribbons carry across?
yes they do
