Trader's Glossary

Carry Trade

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?

The average daily trading volume in the foreign exchange market exceeds $5 trillion.

Word of the day
"Shooting Star" - A type of bearish candlestick that usually appears during an uptrend and indicates trend reversal.
Pro Tip

required margin in quote currency = trade size in units / leverage X exchange rate