What is a #CarryTrade?

A #CarryTrade is when you borrow money in a low-interest-rate currency and invest it in assets with higher returns.

The yen #CarryTrade is famous for this—borrow yen cheaply in Japan and invest elsewhere.

But it’s risky! If the yen strengthens, you’ll owe more when paying back, leading to big losses.

So, while it can be profitable, it can also turn into a nightmare! #CarryTrade