I read an article this morning on dailyfx.com concerning the Chinese stock market crashing again last night. They say that because the Dow and Forex haven't responded doesn't mean they won't; and when they do it may be a large reaction such as back in late February.

What they did not say is how to take advantage of this when it does occur. They mentioned the carry trade unwinding, which I've heard of many times of course, but I'm not sure just what that means.

So that I'd like more information regarding what is carry trade unwinding exactly, and when the China stock market crashes and the Dow follows, what pairs could be impacted and which path (i.e. the way to be ready to take advantage of the ). I'm assuming, although I may be wrong, that it could be a replica of February so shorting any pair would work. But, is just one more preferable than others? Or is just another approach best?

Thanks,
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