By selling currencies whose country has a lower interest rate against currencies whose country has a higher interest rate, you can profit from the interest rate differential
(known as a carry trade
) as well as price appreciation.
That’s like being able to get a frosted cupcake with sprinkles on top! That talks to you! Imagine how delicious that would taste!
Currency crosses offer many pairs with high interest rate differentials that are prime for these types of trades.
For example, take a loo…