Carry trade
What it is
Holding a currency with a high interest rate against one with a low rate, to earn the daily positive swap as well as any price trend.
The rules
SetupA large and stable rate gap, and a calm or favourable trend.EntryIn the direction that pays positive swap.StopWide, on the weekly chart; small size.TargetHold while the trend and the rate gap last.
When it fails
In market panics, carry trades unwind together and fast, often wiping out months of swap in days.
Risk profile
Slow gains, sudden losses. Broker swap rates can change.
Who it suits
Long-term traders who watch central-bank policy.
Education, not advice. Goldman Academy teaches how markets and tools work. Nothing here is a recommendation to buy or sell, and no lesson promises profits. Trading leveraged products carries a high risk of losing money; only trade money you can afford to lose.