Trading Basics
Carry Trade
A forex trading strategy of borrowing funds in a low-interest rate currency and buying assets in higher yielding currency.
For years this was selling Yen to buy Dollars.
Other Trading Basics
Basis Point
A basis point is 0.01% and is typically used when quoting interest rate changes.
A move of 0.25% is described as 25 basis points.
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Learn the skills needed to trade the markets on our Trading for Beginners course.