How does carry work in the context of cryptocurrency trading?

3 answers

• Hrithik PariharJan 09, 2026 · a month ago
  Carry in cryptocurrency trading refers to the cost of holding a position overnight. It is influenced by factors such as interest rates, market volatility, and liquidity. To calculate carry, you need to consider the interest rate differential between the two currencies in the trading pair and the size of your position. The carry can be positive or negative, depending on whether you are receiving or paying interest. It is an important consideration for traders who hold positions for longer periods of time.
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• Bank HessAug 06, 2024 · a year ago
  In the context of cryptocurrency trading, carry refers to the interest rate differential between the two currencies in a trading pair. It is calculated based on the size of your position and the interest rates of the respective currencies. If the interest rate of the currency you are buying is higher than the one you are selling, you will earn positive carry. Conversely, if the interest rate of the currency you are selling is higher, you will have negative carry. Carry can be an additional source of profit or cost for traders, depending on the direction of their positions.
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• Sadtew BasmatJun 28, 2025 · 7 months ago
  Carry in cryptocurrency trading is the cost or benefit of holding a position overnight. It is influenced by various factors, including interest rates, market conditions, and the size of the position. To calculate carry, you need to consider the interest rate differential between the two currencies in the trading pair and the amount of the position. Positive carry means you earn interest on your position, while negative carry means you pay interest. Traders should carefully consider carry when planning their trades, as it can significantly impact their overall profitability.
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