The hottest trade of 2026 has a problem [Video]
The carry trade has been one of the biggest winners of the year, helped by low volatility, wide interest-rate gaps, and a relatively stable dollar.
But now, parts of that setup are starting to crack.
In my new video, I break down:
- Why 2026 became a golden year for carry
- The classic yen carry trade explained
- The new euro funding twist
- The hottest trade of 2026
- 3 triggers that could cause it to unwind
- 3 rules to follow before touching this trade
Carry can feel like easy money for a long time.
Until suddenly, it isn’t.

Author

Kathy Lien
BKTraders and Prop Traders Edge
Having graduated New York University’s Stern School of Business at the age of 18, Ms. Kathy Lien has more than 13 years of experience in the financial markets with a specific focus on currencies.
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