A currency carries trade is a technique in which a high-yielding currency uses a low-yielding currency to fund the trade. A trader who employes this technique tries to profit from the difference in rates which can be significant depending on the level of leverage utilized. In the forex, the carry trade is among the most common trading techniques. Because the interest rate spreads on these currency pairings are extremely wide, the most popular carry trades have been purchasing currency pairs such as Australian dolor/ Japanese Yen and the new Zealand dollor/ Japanese Yen.