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Answer:
Carry trade can be used any time. Always trade to the advantage of the symbol with the higher interest. For example, let's look at the AUD/USD currency pair. AUD is for Australian dollar and USD is for US dollar.At the moment of this writing, the interest for AUD is 4.0% while the USD interest rate is less than 1%. This means you want to buy or long AUDUSD. When you long AUD/USD, you are buying AUD to collect the high 4% interest. If AUDUSD was USDAUD instead, then you would short or sell USD. This is equivalent to buying AUD.
