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Business, 13.03.2020 21:54 lenaeeee

Assume that the interest rate on borrowings in Japan is 1 percent, while the interest rate on deposits in Australian banks is 5 percent. A trader borrows in yen and then converts the money into Australian dollars and deposits it in an Australian bank to make a 4 percent margin. Which type of trade is this an example of?

A. Swing trade
B. Carry trade
C. Channel trade
D. Price action trade

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