Currency - Is there really an Interest Rate Arbitrage?

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4th April 2013

Link Between Currencies, Commodities and Equities Series 25 Hi Promofree Learn about un hedged and hedged Interest Rate Arbitrage Trades  Interest Rate Arbitrage The answer to this question lies in the cost of hedging. High hedging costs negate Carry Trade profitability while un hedged Carry Trades lead to zero profitability or even losses. Let us look at examples of un hedged and hedged Carry Trades.     Click here to read full analysis Arjun Parthasarathy www.investorsareidiots.com arjun@investorsareidiots.com Information herein is believed to be reliable but the editor of Investors are Idiots.com Arjun Parthasarathy does not warrant its completeness or accuracy. Opinions and estimates are subject to change without notice. This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The financial markets are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved. Unauthorized copying, distribution or sale of this publication is strictly prohibited. The author of the articles may have investments in instruments that are the subject of the articles. © InvestorsAreIdiots.com. All rights reserved. Not interested in receiving emails from us? Click to unsubscribe.