carry trade

British

noun

finance a speculative transaction in which a trader buys the currency of a country with a high rate of interest and sells the currency of a country with a low rate of interest

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Face it, the yen carry trade of borrowing cheap at near zero interest rates is dying.

From The Wall Street Journal

Cheap credit from the yen carry trade provided some.

From The Wall Street Journal

A currency crisis in Japan might reverse the Japanese yen carry trade that has to date been a major source of financing to other countries.

From Barron's

A carry trade involves borrowing a currency at low interest rate and using the proceeds to buy currencies with higher yields.

From The Wall Street Journal

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023