In a Low Interest Rate World, Is the Carry Trade Dead?
Thursday, February 14, 2013
12:00 pm New York
11:00 am Chicago
9:00 am San Francisco
5:00 pm London
Traders, investors and money managers often base their decisions on rates of return. In the FX markets, this means comparing the interest rate of one country to the interest rate of another. These types of trades are extremely popular and are called 'carry trades', because you borrow currency at the lower rate and earn interest on the currency with the highest interest rate.
But what if the interest rates offered by the major countries are all very close to one another - and are fairly close to zero? In this scenario, 'carry trades' don't offer much opportunity for profits. And as 2013 begins, carry trades in the currencies of the major countries are not worth the bother. How will it change how you will think about trading currencies?
Tim will show you how to find and trade opportunities in the FX Futures markets, even if the interest rate differential between the major countries has collapsed. With a change in emphasis and solid money management and risk return, there are opportunities to be made in this environment!