currency carry trade means: Carry trades are where you borrow money and then pay interest to purchase something with higher interest. You might borrow money in Yen, where there is a low interest rate. Then you use the funds to buy long-term debt U.S. dollars. The trade may yield a positive return but it can be risky because of two aspects. The first is that U.S. interest rates may rise, decreasing the price of your bond. The exchange rate may make a negative move, increasing borrowing costs. Similar: Carry Trade. (in Stock Market Dictionary)