Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who may pay to be displayed in certain positions on certain pages, or may compensate us for referring users to their services. While our reviews and assessments of each product are independent and unbiased, the order in which brands are presented and the placement of offers may be impacted and some of the links on this page may be affiliate links from which we earn a commission. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
Carry trade calculator
The Invezz carry trade calculator calculates the amount of interest that’s either earned or paid on currency pair trades. Keep reading to learn how our carry trade calculator works, and how you can use that knowledge to inform yourself when forex trading.
How to use our carry trade calculator
Copy link to sectionUsing our carry trade calculator means following these steps:
- Enter in the currency you use for your account (for example, GBP).
- Enter in the currency pair you wish to trade (for example, GBP/EUR).
- Enter in the action you wish to perform (either buy/long or sell/short).
- Enter in the lend rate for the trade.
- Enter in the borrow rate for the trade.
- Type your trade size.
- Type the number of days you’ve held (or plan to hold) your position.
Your interest earned will appear at the bottom instantly after you’ve punched in all of this information.
How the carry trade calculator works
Copy link to sectionThe Invezz carry trade calculator tabulates the profit or loss you’ve made on your forex currency pair trade, accounting for the lend and borrow rates linked to trading each of the two currencies. It takes into account all relevant information to generate the precise figure so you can work out the amount you’ll gain or lose on a forex trade.
Why should I use it?
Copy link to sectionYou should use this carry trade calculator to ensure your trades will be profitable, even when taking interest rates into account. The goal of a carry trade calculator is to take a low-interest rate into account and figure out the point at which you stand to make a profit.
What is a carry trade?
Copy link to sectionA carry trade is a trading strategy that involves borrowing at a low-interest rate and investing in an asset that provides a higher rate of return. Carry trading is most commonly undertaken when investing in forex markets.
The foreign exchange market (forex) is a global market where world currencies are traded for each other, in the form of currency pairs like EUR/USD or GBP/USD. The forex market is responsible for setting foreign exchange rates for every currency in the world. Traders use forex brokers to either buy or sell different currencies, with the goal of making a profit if the currency they’re trading moves in the direction they’ve predicted.
