A carry trade is a strategy that involves simultaneous low-interest-rate borrowing and investing in a high-rate-of-return crypto asset. It is most commonly employed in forex trading, where traders might borrow and convert a low-interest-rate currency into a high-interest-rate currency — but proceeds could (in the crypto market’s case) be deposited into crypto-denominated assets.
Carry trades are high-risk strategies due to the risk of price declines and implicit risk associated with investing with borrowed funds. This makes carry trades primarily appropriate only for highly skilled and/or institutional investors with very-high risk tolerances.
A common example of a carry trade would be an individual accepting a 0% cash advance in order to invest in cryptocurrencies — an extremely high-risk strategy.
Henüz bir OKX tüccarı değil misiniz? Bugün kaydolun ve dünya lideri kripto ekosistemimize katılın
Hareket halindeyken kripto ticareti yapmaya hazır mısınız? OKX uygulamasını indirin en güçlü kripto platformunu cebinize koymak için.
Source: https://www.okx.com/academy/en/carry-trades