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interest rate differentials

Carry Trade Explained: How It Works and Why It Blows Up

September 17, 2026June 11, 2026 by Bruno
Carry Trade Explained: How It Works and Why It Blows Up

How the carry trade works in plain English: borrow in a low-rate currency, invest in a higher-yielder, pocket the spread — and what causes the unwinds.

Categories Capital Markets, Market Education Tags carry trade, currency trading, foreign exchange, interest rate differentials, investing basics, yen carry trade

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