Carry Trade
Carry Trade involves borrowing money in a low-interest-rate market and investing in high-return markets for profit.
Relative value strategy terms for carry trades and hedged tender positions.
Relative Value and Carry Strategies terms describe methods investors use to reduce, shift, finance, or deliberately accept market risk.
Use this branch when the strategy label changes exposure, downside protection, leverage, collateral, liquidity, hedge cost, or risk appetite.
| Term | Use it for |
|---|---|
| Carry Trade | A risk, hedge, leverage, or tactical exposure term used in strategy review. |
| Hedged Tender | A risk, hedge, leverage, or tactical exposure term used in strategy review. |
Check the exposure being hedged or amplified, the instrument used, hedge ratio, leverage, collateral, margin, liquidity, counterparty risk, time horizon, and cost of protection.
This page is educational and does not recommend a specific investment strategy, security, tax treatment, or account choice.
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Carry Trade involves borrowing money in a low-interest-rate market and investing in high-return markets for profit.
A hedged tender uses offsetting positions to manage risk around a tender offer or corporate action.