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💡How to Earn Passive Income in Forex Most traders focus on price movement — but did you know you can earn income just for holding certain trades? It’s called the carry trade, and it’s one of the oldest, most reliable strategies in forex. Here’s how it works👇 Currencies come with different interest rates. If one country’s rate is higher than another’s, traders can profit from that difference. Example: 🇺🇸 USD interest rate: 5% 🇯🇵 JPY interest rate: 0% If you buy USD/JPY, you’re buying the higher-yielding currency and selling the lower-yielding one — earning the 5% interest differential. That interest is paid daily as what brokers call the swap or rollover rate. Even if the pair doesn’t move much, those daily payments can add up over time.