Meaning of “carry trade” in the English Dictionary

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"carry trade" in Business English

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carry tradenoun [ C ]


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)