Carry Trade
Borrowing in a low-interest currency to invest in a higher-yielding one.
Full Definition
A carry trade involves borrowing in a currency with low interest rates and investing in one with higher rates, profiting from the interest rate differential. For example, borrowing JPY (low rates) to buy AUD (higher rates). Carry trades can be profitable during stable markets but risky during volatility when exchange rate moves can exceed interest gains.