http://forextrading-tips.com/31/is-it-a-carry-trade-if-i-buy-gbdusd-in-the-foreign-exchange-market-and-hold-the-position-for-at-least-one-day Sat, 21 Nov 2009 17:57:55 -0500 http://wordpress.org/ hourly 1 http://forextrading-tips.com/31/is-it-a-carry-trade-if-i-buy-gbdusd-in-the-foreign-exchange-market-and-hold-the-position-for-at-least-one-day/comment-page-1#comment-106 Tom B Tue, 01 Sep 2009 11:21:55 +0000 http://forextrading-tips.com/31/is-it-a-carry-trade-if-i-buy-gbdusd-in-the-foreign-exchange-market-and-hold-the-position-for-at-least-one-day#comment-106 Any trade that involves borrowing money from one location at a lower rate than where it is being lent is technically a carry trade. Banks, pensions, and hedge funds will typically hold a carry trade for at least several weeks, but may hold it for several years (yen crosses are a good example), and have more interest in bidding on pairs with higher rate differences. Bottom line: yes, technically you are participating in a carry trade (but not a most desirable one). Any trade that involves borrowing money from one location at a lower rate than where it is being lent is technically a carry trade. Banks, pensions, and hedge funds will typically hold a carry trade for at least several weeks, but may hold it for several years (yen crosses are a good example), and have more interest in bidding on pairs with higher rate differences. Bottom line: yes, technically you are participating in a carry trade (but not a most desirable one).

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