By EconMatters
We discuss the day`s trading action in how the oil market is being carry traded up by some entity today, and illustrate the negative effects for gold, copper and the bond markets. Per the Investopedia source, here is the concept of Positive Carry explained for everyone:
What is a ‘Positive Carry’
A positive carry is a strategy of holding two offsetting positions, one of which creates an incoming cashflow that is greater than the obligations of the other.
BREAKING DOWN ‘Positive Carry’
Similar to arbitrage, positive carries generally occur in the currency market where interest paid to investors in one currency is more than they have to pay to borrow in another currency.
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