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What is a carry trade? Borrowing at a low-interest rate and investing in an asset that provides a higher rate of return. Exploiting an arbitrage

What is a carry trade?

Borrowing at a low-interest rate and investing in an asset that provides a higher rate of return.

Exploiting an arbitrage opportunity resulting from a pricing discrepancy among three different currencies in the foreign exchange market.

Borrowing at a high-interest rate and investing in an asset that provides a lower rate of return.

Investing in an asset that drops below support lines.

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