Steve Connell has spent over 17 years working in the finance sector as a trader/market maker and strategist. Over that time he’s worked for several global banks and hedge funds. Steve has a unique insight into a range of financial markets from foreign exchange, commodities to options and futures.
With covered interest arbitrage, a trader is looking to exploit discrepancies between the spot rate and the futures or forwards rate of two currencies. This allows the trader to borrow or lend at below market or above market rates respectively.