carry trading?

[plake79]

I'm interested in the idea of 'carry trading' but not really sure how to do it in a way that would minimise any risks

Ive looked at the forex NZD/JPY and also NZD/USD which seem to be a good place to start due to the interest rate differential. But not sure how to hedge these in order to reduce the risk.

Can anyone suggest anything?

 

[Martinghoul]

You can't hedge a 'carry trade'... There's no free lunch and you can't receive money without taking risk.