How to trade on exotic currencies?
Usually , only
the carry trade is used for exotic currencies . It comes to buying a
currency with low interest rates, such as the yen or dollar now to put
your money then a currency with high interest as the Brazilian real and
the Indian rupee rate . The carry trade is in no way intended for
beginners that this trading strategy seems very simple at first.
Due
to high inflation in emerging countries , the monetary authorities
attempt to intervene in setting up interest rates élevés.C is in this
context that carry trade strategy involving exotic currencies can have
everything interest.
An alternative to take advantage
of differential rates is to use the black market which is often present
in emerging or developing . This option is not legal and is , for
example, to buy on the official market with dollars bolivars then sell
those dollars on the black market at double the purchase price , making
the transition a nice gain . The use of the black market is interesting
in countries like Venezuela , where the exchange restrictions were
imposed. We need to find to act as a local intermediary.
