fx-carry-trade

Evaluate FX carry trade opportunities using forward curves, volatility surfaces, and interest-rate differentials.

1|Updated May 16, 2026

Search Tags:#implied volatility #risk-adjusted returns #forward curve #volatility surface #fx carry #historical pricing

Ready to run

npx skills add https://github.com/executiveusa/Cheggie-trade-V2 --skill fx-carry-trade-executiveusa

💬 Prompt for ChatGPT / Claude Chat▼

Please help me install this Agent Skill.
Skill: fx-carry-trade
Source: https://github.com/executiveusa/Cheggie-trade-V2/tree/main/core/financial-skills/plugins/partner-built/lseg/skills/fx-carry-trade
Command: npx skills add https://github.com/executiveusa/Cheggie-trade-V2 --skill fx-carry-trade-executiveusa

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve?

It helps you evaluate whether an FX carry trade offers attractive, risk-adjusted returns by turning spot, forward, rate differentials, and vol-surface information into a carry-to-vol decision metric.

Core Features & Use Cases

Carry-to-vol assessment: Computes and compares annualized carry against ATM implied volatility to estimate risk-adjusted attractiveness.
Forward curve term optimization: Maps the full forward curve to identify the tenor where carry is most favorable.
Volatility risk context: Uses the volatility surface (ATM, skew via risk reversals, and tail risk via butterflies) to flag short-vol risk.
Historical spot-trend grounding: Adds 1Y historical pricing summaries to contextualize where current spot sits in its recent range.

Quick Start

Ask the assistant to analyze carry trade opportunities using spot rates, forward curves, vol surface data, interest rate differentials, and 1Y historical pricing to produce a carry profile and recommended trades.

Frequently Asked Questions about fx-carry-trade

High-intent search queries and answers about installing and using this skill.

FAQPage Schema

How do I evaluate FX carry trade opportunities using forward curves and volatility surfaces?▼

To evaluate an FX carry trade, combine spot rates, forward pricing across tenors, and interest-rate differentials with volatility-surface risk metrics. This process calculates annualized carry and carry-to-vol ratios to produce a risk-adjusted recommendation for your trade direction and tenor.

What is a risk-adjusted carry-to-vol ratio in foreign exchange trading?▼

A risk-adjusted carry-to-vol ratio compares the annualized carry of an FX trade against its ATM implied volatility. This metric estimates the attractiveness of the trade by quantifying how much yield you earn per unit of expected volatility risk.

How do I select the best tenor for an FX carry trade using the forward curve?▼

You can select the best tenor by mapping the full forward curve to identify the maturity where the carry profile is most favorable. Comparing forward pricing across tenors highlights the specific term that maximizes your annualized carry relative to risk.

How does implied volatility skew and tail risk affect my FX carry trade selection?▼

Implied volatility skew via risk reversals and tail risk via butterflies flag short-volatility risks in your FX carry trade. These volatility surface metrics contextualize potential downside deviations, helping you prioritize trades with favorable carry-to-vol profiles while avoiding dangerous exposures.

Do I need historical spot pricing data to assess an FX carry trade?▼

Yes, 1Y historical pricing summaries are needed to ground your FX carry trade analysis. Historical spot context shows where the current spot rate sits within its recent range, ensuring your forward curve and volatility surface assessments reflect realistic market conditions.

What data inputs are required to calculate annualized carry and risk-adjusted returns?▼

Calculating annualized carry and risk-adjusted returns requires fx_spot_price, fx_forward_price or fx_forward_curve, fx_vol_surface, tscc_historical_pricing_summaries, and interest_rate_curve. Tool-driven retrieval of these inputs enables the computation of your carry-to-vol outputs and final trade recommendation.