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Thread: The Carry Trade: Buy or Sell?

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#139 (permalink)

06-25-2008, 10:37 AM

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Yes, the volatility index is a good indicator for the carry trade because carry trades thrive in low volatility environments. That is why we created and include a derivation of the VIX in our weekly carry trade report

http://www.dailyfx.com/story/trading...977042241.html

Quote:

Originally Posted by jeremy p

I just read that the Volatility Index (VXI) is one of the best indicators for the carry trade, is this true? I believe so because the carry trade works when volatility is low and when the VXI goes out of wack, then the carry is dangerous. The volatility index is traded on the CBOE. This invester fear gauge should be a great way to predict whether the carry is profitable or not.

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