Carry Trade again?

Why would you even consider a carry trade on those pairs?! :confused:

A simple Google for "world interest rates" provides you with plenty of exotics with sizable interest rate differences.
 
Quote from TrueStory:

A credit (debit) to the account daily depending on the interest rate differential of the 2 currencies and the size of the position. Every firm pays a different carry rate to positive carry positions, so you should ask and choose carefully.

However, as mentioned in this thread, most carry rates are not high enough right now justify the risk involved in holding the position (some would say they never were).
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Thank you for clarifying. What constitues a "day"? Does it depend on market close of the respective currency? i.e. I hold USD @ time of market close in NY. I am then paid any positive carry on open positions at that time?
 
Quote from Kassz007:

Thank you for clarifying. What constitues a "day"? Does it depend on market close of the respective currency? i.e. I hold USD @ time of market close in NY. I am then paid any positive carry on open positions at that time?
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Yes, 4 or 5pm NYC close in all cases that I'm aware of.
 
Quote from Kassz007:

Thank you for clarifying. What constitues a "day"? Does it depend on market close of the respective currency? i.e. I hold USD @ time of market close in NY. I am then paid any positive carry on open positions at that time?
More...

Oh and don't forget, the fancy idea of buying at 3:59pm and holding to 4:01pm doesn't work due to spreads costing more than the carry pays, even on tight pairs with the best rates. No free lunch.
 
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