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How can one starts a yen carry trade? Does it have to be a big investor to do the yan carry trade?


How can one starts a yen carry trade? Does it have to be a big investor to do the yan carry trade?

You can open a Japanese Yen account with a currency trading firm. And use their margin of 100 to 1 to borrow Japanese Yen, convert this money to a higher interest rate currency, and profit from the difference in the interest rates between these two currencies.

But the risk of doing this is that the exchange rates between the two currencies can suddenly change. And you may loose more money than what you've started out with. If you loose borrowed money, then you'll end up in debt.

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