This is a YouTube video titled "Mastering Carry Trades: Optimizing Returns in Finance" containing a financial explanation by Dara Ladjevardian about the concept of carry in trading, specifically illustrating it with an example involving buying stock on margin and the expected returns if spot prices remain unchanged. The content is educational and focused on finance concepts.
So carry is, is basically the expected return if, if spot prices and remain the same. So the easiest example is probably something like, let's say, buying stock on margin. So if you buy some stock, let's say the stock's yielding, I don't know, 4%. But to borrow, to borrow money to buy that stock, you've got to pay 2%. So the difference between those two rates is 2%. So that means if the spot price of the stock remains unchanged, you're going to earn 2%. So your carry on that stock is 2%. So that would give you a long carry signal.
