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Earning While You Hold: A Practical Guide to Carry Trade Strategies for US Forex Traders

Carry trading — borrowing in low-interest currencies to invest in higher-yielding ones — has generated substantial returns for forex traders who understand its mechanics and respect its risks. This step-by-step guide walks US traders through the fundamentals of interest rate differentials, how to identify viable carry pairs, and the risk management practices that separate profitable carry traders from those caught in sudden reversals.