This is what was likely behind the most recent stock market blowup

Successful carry trades rely on low volatility and precise timing to exit before volatility spikes, as losses can escalate rapidly with high-risk gambles.

Timing the exit from these trades is more about luck than expertise, often overlooked by even sophisticated investors, especially during extended periods of low volatility.

"The nature of the carry trade is very skewed - you make money slowly but lose it very quickly," says Brent Donnelly, president of Spectra Markets.

Read at Fast Company