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Carrying charges

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carrying charges investment & finance definition
The cost of owning and storing a commodity during a period of time. This cost influences the difference between the futures price and the expected future spot price.
See cost of carry.

 


Carrying charges
Cost of storing a physical commodity or holding a financial instrument over a period of time. These charges include insurance, storage, and interest on the deposited funds, as well as other incidental costs.

Carrying Charges: Also called Cost of Carry. Cost of storing a physical commodity or holding a financial instrument over a period of time.

Carrying Charges - In futures trading, it is the cost of holding the underlying asset over a period of time.

Positive Carry The cost of financing a financial instrument (the short-term rate of interest), where the cost is less than the current return of the financial instrument. See also: Carrying Charges and Negative Carry.
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See also: Carry, Carrying charge, Market, Commodity, Future

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