Pairs trading is a market-neutral trading strategy that matches a long position with a short position in a pair of highly correlated instruments such as two stocks, exchange-traded funds ETFs , currencies, commodities or options. Carry trades could be ideal when central banks increase interest rates, but could be extremely risky in the wrong situation Before moving on, we should note here that there are two kinds of situations that lead a central bank to maintain high interest rates, and only one of them constitutes the ideal conditions for the carry trade. When applied to the Core Strategy, it is the complete Forex Trading training you need to get you started...
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