A carry trade is a strategy in which the trader invests in a high yielding instrument financed by borrowing in a low yielding instrument. Popular carry trades include investments in low grade bonds financed by borrowings in high grade bonds, investments in long maturity bonds financed by borrowings in short maturity bonds, and options strategies in which the investor is long theta (receiving time premium).
CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.