As stated earlier, the whole idea of the carry trade strategy relies on finding and borrowing low-yield currency and using it to buy the one with a higher yield. The difference between interest rates will make your gains. To succeed, traders need to find currency pairs with a high-interest rate spread. The most popular assets include AUD/JPY, NZD/JPY, and some more.

Despite the fact that interest rates are quoted annually, they can still change at any moment depending on the economic and geopolitical situation. These changes may happen whenever central banks decide to interfere. Meanwhile, some countries try to keep high and low-interest rates for as long as possible to let traders ensure a favorable outcome. As a rule, a carry trade strategy is supposed to hold open positions for about several months https://mtrading.com/copytrade/for-masters