FX carry trade

mrb102189

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I don’t really understand this statement:
‘FX carry trade exhibits negative skewness and positive excess kurtosis’
 
Negative skewness: large probability of small gains, small probability of huge losses.
Positive excess kurtosis: high probability of results near the mean (small gains), higher than normal probability in the tails (higher probability of the large losses).
The upshot: Lots of small gains, a few huge losses.
 
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