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How the Carry Trade Works. http://www.financial-spread-betting.com/Carry-trade.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Zoe Fiddes, Head of Sales at ORE Tech comments. Currencies have different interest rates which are set by the Central Banks. So when you are trading one currency against another, there is a differential in interest rates. So for instance if you're buying the Australian dollars and selling USD $ - the interest rate of the Australian dollars is a lot higher than the USD. So when you buy Australian dollars you deserve that extra interest...
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