People today are looking for shortcuts to make money and among these shortcuts is a method known as carry trade. Most people who are aware of money making, may know about this method, its benefits, drawbacks etc. but those who are new to the field of investments may not actually be aware. If you are a new investor, this article is yours to read. Apart from just the introduction to what carry trade is, this article will discuss the benefits as well.
What is carry trade?Carry trade is a method of money-making that involves great risk, yet is considered as the top most profitable ways to make money. This method is relatively quite simple and easy. The method involves holding on to the money till it remains profitable. The method includes borrowing a currency that is paying (or earning) a low rate of interest and investing that borrowed money into a currency that is paying an interest of a higher rate. Carry trade, as the name suggests involves holding money till you make a profit out of it.
Carry trade for new investorsMany people who are new to making investments are unaware of the benefits that carry trade brings along with it. If you are a new investor, there are a few benefits of carry trade that you need to know about.
Benefits of carry tradeThere are several benefits of carry trade which are described as follows:
Holding money for extended periods
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