About Salman Khan
Salman Khan is the Founder, Executive Director, and Faculty of the Khan Academy, whose mission is to provide a free world-class education to anyone, anywhere. He has worked for both hedge funds and Fortune 500 companies and holds an MBA from Harvard Business School, where he was the president of his class. He also attended MIT, where he received three degrees: a Masters in Electrical Engineering & Computer Science, a B.S. in Electrical Engineering & Computer Science, and a B.S. in Mathematics.More Topics Explained
About CNBC Explains
CNBC Explains dissects the complicated economics of our world — everything from stocks and corporate balance sheets, to international trade and government policy. We are pleased to feature the work of Salman Khan, founder of the Khan Academy, as well as the reporting of CNBC anchors and editors. Each short video explains a complex topic using a unique digital interface and easy-to-understand style that simplifies even the most arcane topics.
RSS Feed
Currency Carry Trade: CNBC Explains
Published:
Friday, 2 Sep 2011 | 9:39 AM ET
Text Size 
By: CNBC Explains
When there is a disparity in interest rates between countries, investors have an opportunity to employ a currency trading strategy called the carry trade. By borrowing in one currency and buying bonds in another, based on certain economic assumptions, an investor can execute a carry trade. But how does this strategy work and what type of environment is required? Salman Khan of the Khan Academy explains in a simplified example.
From this video, you’ll understand:
- The basics of the carry trade
- The circumstances that must be in place for a successful carry trade.
- Risks and rewards of a carry trade
 |
Looking For More About This Topic?
© 2012 CNBC.com
Data is a real-time snapshot *Data is delayed at least 15 minutes
