South African traders who move beyond simple intraday setups often discover the appeal of carry strategies. Earning positive swap by holding a higher-yielding currency against a lower-yielding one can feel like earning rent on capital rather than chasing every tick.
Yet carry comes with a major problem. When risk sentiment turns or local news hits, the price can move sharply against the position and wipe out months of accumulated swap. Options overlays offer a way to soften that downside while keeping the core carry idea alive.
In this context, advanced South African traders increasingly view forex trading as a blend of spot exposure, interest rate differentials and option structures. Instead of relying on a naked carry position, they use options to shape the payoff profile. The goal is to keep most of the positive carry while reducing the impact of sudden rand or global shocks.
