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Hello everyone, I am a new member of the great Dukascopy community and this will be my first of many articles. I feel like this is the perfect subject to start with because the explanation of a carry trade brings us back to the very basic fundamentals of forex trading. So here we go!
Definition of a carry trade:
A carry trade consists of borrowing money in a currency with low interest rates and investing the funds in another currency with higher interest rates.
This is a pretty straightforward definition, but let's use an example to put this information into context. If the interest rate of the European Central Bank is 0% while the US Federal Reserve is 1,75%, the interest rate spread would be 1,75% (1,75% - 0%). In this example, we would borrow Euro to invest in USD therefore the net yield of the carry trade would be a gain of 1.75% or 1,750$ a year for 1 lot traded.
How does this apply to trading?
Borrowing and investing in different countries would be way too complicated for an individual to do alone. This is why we do business with brokers. They can give us access to trade almost all the currencies in the world. As we know the FX market operates in pair, meaning that if you inv…
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Diana29 avatar
Diana29 29 Apr.

Nice job!

Sanju777 avatar
Sanju777 29 Apr.

good artilce

Sasha_spicy avatar

good one!

Maxim3 avatar
Maxim3 30 Apr.

useful article!

rajwinder avatar
rajwinder 30 Apr.

Well written, Good Luck

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14/31
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Introduction
The journey to success in Forex trading begins with self-introspection and discovering the trading style and strategies that suit your objectives, risk appetite, lifestyle and own unique circumstances. It is imperative to find a trading technique that is in sync with your personality than to try to conform to someone else's idea of a "proper trader". This article seeks to help traders discover their own trading styles.


The first port of call is assessing you level skill, competence and preparedness for the task of Forex trading by answering a series of questions. These questions if answered correctly will help in moulding a top notch trader. The best trading style for any individual depends on many factors including the reasons to trade, availability, work preferences, requirement for flexibility and level of patience
  • Reasons to trade:
Understanding the reasons behind the trading will help in setting the overall objectives and understand how trading will fit into your lifestyle. Answering the following questions will help you understand if trading is the best thing.
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vap61 avatar
vap61 12 Apr.

сильная статья,проработаны все аспекты торговли,лайк!))

Sebine avatar
Sebine 18 Apr.

Good luck!:)

rashadali avatar
rashadali 27 Apr.

goood article 

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