Wednesday, January 1, 2014

What is the carry trade?

Replace any low - interest financial instruments and financial instruments, more efficient , and then spread the long-term method of trading profit ( carry trade ) is called . The hallmarks of this transaction only from the rate of profit is a major purpose of that . Is , of course , borrowed or added incentive because it is much more effective than the market , many professional traders use this method . In more detail , we deposited one million MNT Mongolian bank to pay us years later , 12.5 % or 125 thousand MNT . This is a wonderful development . However , Australia 's central bank deposited after year to pay 3 % or 30 thousand . International currency markets , liquidity is very poor MNT Because a good avst.dollar liquid , many financial organizations for trade avst.dollaryn " " ( incentives ) are provided .


Vary depending on market rates , but we offer 50 times the commercial companies to borrow money can be found easily . Each number 500-1000 , but long ago not far to reach here .

Well , $ 1,000 for the financial companies might account was opened . That will enable the company to borrow 50 times the amount borrowed for trading 0.2 % would have been required to deposit . So, the maximum interest rate currency is stored buy thousands borrowed AUD 50 , years * 50 , or 3 % a 150 % increased amazing ... It really does not ? one million of us to be 2.5 million in ... 100 million , but ... ?

People all over the world use this method there a reason is easily bayajchikhgüi and . It is now our long - term trading , the major drawback is the reading . Australian dollar exchange rate against the U.S. dollar today from 1.0460 to 1.0280 after some time , what happens? There are at this time all of our money as we can hit to the head .

Why is that , you know , , but explained . Our 50 double , $ 50 thousand , 0.2 % of the $ 100 . That which we placed our $ 1000 has been reduced to 900 . But for each one thousand dollars , or 0.5 Lot 50 pips $ 5 is imposed . So, 900 divided by 5 equal 180 pips . Opened the first trading price of 1.0460 from minus 180 equal to 1.0280 . That is all . So year after us will after 150 % profit orders find one day 180 pips of our out - of - pocket money would go . However, prices started rising , we benefit even more obvious . Therefore , the main types of commercial work , " enter the correct time " . You Graph is a very long - term view of our activities which can implement conditions will see a few .

This rare quality for less money , his " circulated " living in friends becomes almost impossible for a match . However, more money , just keep her colleagues for a slightly different case . They are a low risk way to see this as a reasonable way . This reader reads a lot of money , " class " is not a member . And in this , then what is relevant to us ? I think that the answer is this : Currency market is involved with so many players have a bit more money . Their total assets held by many of the other players will be more money . Wall Street as a percentage of beds and things , you know . Therefore , to understand their method will bring step one guess .

Among the tools suitable for long - term foreign exchange market trading , the Australian dollar , New Zealand dollar and can tell other currencies . And government bonds , the bonds can be used in the long term , such as trading companies . This trading method is the complex type as much as the weak , to my knowledge , is less than an hour . So wish you Detailed study .

Basis for long - term trading success on the market , which is the correct specification of the minds so willing to practice the " big thing " will be required . Great effort and a lot of time and patience ... These may all experience together will be productive , but also make time to confirm that . " Experience is the best teacher ... him none same " that how you feel ?

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