This is regarding carry trading. The last time I looked into this I was 17 years old and the USD federal interest rate was something like 5.25 percent. I just dabble in financial reports nowadays so im not sure what the rate is currently at.
I want to take a carry trade, while also taking another trade using another pair for a hedge.
For example: long GBP/JPY
short USD/JPY
im assuming the interest I would profit by buying the GBPJPY will be greater than the interest I will pay out (if any) by selling the USDJPY.
Am I off my rocker here guys?