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Carry Trade

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Fiat Money: What is a Fiat Currency?

A fiat currency is a monetary instrument backed by a national government like the British pound or Canadian dollar. Learn how fiat currencies operate and how they compare to other types of money.

Ryan Thaxton
Ryan Thaxton

How to use the currency carry trade strategy

A carry trade is a trading strategy that involves borrowing a low-yield currency and investing in a high-yielding asset to exploit the interest rate differential. Carry trades are most common in forex trading with traders borrowing the low interest Japanese yen to buy higher interest currencies. Learn what currency pairs work best and how to execute the strategy yourself in our full guide.