carry trade

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Related to Carry (investment): Carry trade

carry trade

n.
1. A financial transaction in which a currency or commodity is borrowed at a favorable interest rate and traded for a higher yielding asset.
2. The business of making such transactions.
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

carry trade

n
finance a speculative transaction in which a trader buys the currency of a country with a high rate of interest and sells the currency of a country with a low rate of interest
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014