Interest Rate Parity (Sketch)

Forward points and why carry is not free money.

6 Lessons8m total

Covered interest parity links spot, forwards, and rate differentials. Forward points adjust so arbitrage is limited absent friction.

Course Overview

Forward points and why carry is not free money.

✓Core concepts explained with market context

✓Practical examples tied to real instruments

✓Risk-aware framing — educational only

✓Next-step links across the VegaDeck curriculum

Covered interest parity links spot, forwards, and rate differentials. Forward points adjust so arbitrage is limited absent friction.

Real-world breaks appear from capital controls, credit risk, and funding stress. Carry trades embed these breaks as risk premia.

Use parity as intuition for why high-yield currencies can still depreciate in crises.

Educational only · not investment advice · Risk disclosures

8 Lessons · 1h 4m

1Asia Session: Liquidity and Event FlowTokyo open habits without session superstitions.8m▢

2Carry Concepts Without Trade RecommendationsInterest rate differentials, funding, and why carry regimes flip.8m▢

3Interest Rate Parity (Sketch)Forward points and why carry is not free money.8mContinue Learning

4Leverage: Margin Mechanics, Not a StrategyHow margin multiplies exposure and why equity can disappear quickly.8m▢

5Liquidity Providers and Retail BrokersHow prices reach your screen — STP, dealing desk, and conflicts.8m▢

6Major Currency Pairs and Liquidity TiersG10 majors, crosses, and why spread quality varies by session.8m▢

7Pips, Points, and Lot Sizing in FXTranslate price increments into risk units without confusing JPY pairs.8m▢

8What Is the Forex Market?Who trades FX, how pairs are quoted, and why leverage wrappers change the risk profile.8m▢

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Educational only · not investment advice · Risk disclosures