>>20930155>carry tradeIt's a forex term. By nature of the assets, it is always a pairs trade where you are always short one currency and long another. You get paid a daily "swap" value based on the interest rate differential between them, which can actually earn interest.
People typically short JPY or CHF and long USD or NZD, then use that money to leverage up on other assets. This is partly one of the reasons why a small interest rate decision of 25 bps can have far-reaching consequences
