A strategy employed in currency trading, whereby an investor sells a currency with low interest rate and buys a currency with a high interest rate so as to benefit from the interest rate differential of the two currencies. Profits are usually maximised by the use of leverage.
Did you know?
In terms of trading volume, the FX market is by far the largest market in the world.
Word of the day
"Parity" - The event of two currencies being of equal value.
Try to stay away from bucket shops.
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Risk Disclosure Statement’./p>
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