A Carry Trade is when you are selling into the market you are paid for Holding the position over night by your banker - When you are Buying into a position over night the bank is than charging you a percentage to hold the position - This is the 2 main differents - Some people think that you are able to make some money from the Carry Trade but this than requires you to be a very good trader as well supply a decent upfront capital/funds as so you are getting paid lots of interest over the nights at holding the position. Best Left down to the Buffets of this world -would you not think.