Carry Trade

This Issue in United States

Concept of Carry Trade in Futures Trading

In this context of financial law, the following is a definition of Carry Trade: A trade where one borrows a currency or commoidity commodity or currency with a low cost of carry and lends a similar instrument with a high cost of carry in order to profit from the differential.

Carry Trade

Concept of Carry Trade in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A trade or strategy where the aim is to generate ongoing positive cashflow.

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See Also

• Derivatives Contract