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?
U.S. President Richard Nixon is credited with enabling a free-floating currency system after ending the Bretton Woods Accord.
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"Australian Securities And Investment Commission (ASIC)" - Independent government body of Australia, acting as the country’s corporate regulator.
Stable Internet connection is a pre-requisite for trading.