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English definition of “carry trade”

carry trade

noun [C]
 
 
STOCK MARKET
a method of investing in which an investor borrows money at a low interest rate to buy an investment that is likely to produce a much higher amount of profit. Carry trades are often used by investors in foreign currencies: The carry trade is mostly driven by Japanese individuals trying to improve the return on their savings.
(Definition of carry trade from the Cambridge Business English Dictionary © Cambridge University Press)
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