Resolved Question
At recent time, whAt is the best currency pair to do carry trade?
about 1 year ago
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Hello ghafoorazeemi! The Forex market is always volatile and nothing is permanent. But I got a link below that might give helpful answers and hints to your question. I wish you all the luck on your trading :D
about 1 year ago
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Answers (4)
I definitely agree to what our mate said. At the moment, I think the CAD is good for carry trades but this could not go on forever. Who knows, next week will be different. If you're gonna dive into forex trading, just don't forget to wear goggles so that you'd keep your eyes open. No kidding. Really serious.
about 1 year ago
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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.
about 1 year ago
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You can also take a look at the AUDJPY pair. The JPY pair currently has the lowest interest rate of 0.10%, while the Australian dollar has the highest interest rate amongst the majors.
You should also take into account as to the overall trend of the pair. If it looks like the Aussie is on the rise, while the yen is showing weakness, it would be even better for you if you took a long trade, as you would benefit both from interest and from the appreciation of the pair.
about 1 year ago
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In my opinion, the best currency pair for a carry trade is still the AUDJPY. The JPY has the lowest interest rate of 0.10% while the AUD has 4.25%. The interest rate differential alone gives you a profit of 4.15% (4.25%-0.10%).
about 1 year ago
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