Just back,Yes ,it's about borrowing from a low interest currency...

Just back,Yes ,it's about borrowing from a low interest currency and using it.By borrowing from a low interest for ex the Yen u get paid the difference in the interest.So this is a loop hole for the big boys to get paid interest,money for jam and than using it to pump and dump stocks.It's like a double wammy.U get paid the interest every two days and it's called a roll over.

To trade the currencies u need to know the basics as it's a little different way of trading.The first currency is the base,for ex AUDJPY,AUD is the base or u can call it the driver.If u buy,u ar long JPY and vice versa.

On this thread Prophet,Lalit and FS has an interest.I got the hint from Prophet last tuesday as i read this thread and he mentioned there was a big move in all the currencies, i quickly checked it and realised that there was a massive dump on the Yen,that's unwinding the carry trade.I went short on a rebound and Lalit later said to Prophet short NZJPY.I checked it and he was right but because i had shorted the Yen big time i was not game enough.I also think the NZ has a higher interest and it's in sink with the Aussie to use as a carry trade.

So the gist of all this is of importance as u can see the carry trade moving in either direction go the same with the indexes and the stocks and u can't go wrong.I missed the index short but am short a couple of stocks and no longs.So monday come it would be wulalaa!!!

Cheers and have a good day. I'm going for a nice drive down the surf coast,it's a beutiful day today,enjoy.