Eurodollars

Trading Basics

Eurodollars

Dollar denominated deposits held outside the US, and thus outside the control of the US federal reserve. These deposits don’t have to be held in the euro area.

Other 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.

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