cost of carry investment & finance definition
The net cost of holding a cash market position. For physical commodities, cost of carry includes storage costs, insurance costs, transportation costs, and any interest paid to purchase the goods.
Cost of Carry
The interest rate parity, where the forward price is determined by the cost of borrowing money in order to hold the position.
Top Online Forex Brokers ...
The cost of carry is generally understood to be the cost that is associated with holding on to a physical commodity for a specified period of time.
Cost of Carry (also "Interest" or "Premium"): The cost, often quoted in terms of dollars or pips per day, of holding an open position.
Cost of Carry - The cost of borrowing money in order to maintain a position. It is based on the interest parity which determines the forward price.
COST OF CARRYING Cumulative cost incurred during metal trading which includes storing and holding metal, warehousing, interest charges and insurance.
COUPON Annual interest rate associated with capital market bond issues.
Cost of Carry: See Carrying Charges.
Cost of Tender: Total of various charges incurred when a commodity is certified and delivered on a futures contract.
COT: See Commitments of Traders Report.
Cost of Carry (or Carry) - For physical commodities such as grains and metals, the cost of storage space, insurance, and finance charges incurred by holding a physical commodity.
Cost of carry
Out-of-pocket costs incurred while an investor has an investment position. Examples include interest on long positions in margin account, dividend lost on short margin positions, and incidental expenses. Related: Net financing cost.
Also called the cost of carry or, simply, carry, the difference between the cost of financing the purchase of an asset and the asset's cash yield.
Also referred to as Cost of Carry. Carrying Cost The interest expense incurred when borrowed money is used to finance a stock or option position.
In certain cases - but not always - the Forward Price exceeds the spot price by the cost of carrying the underlying asset from the spot delivery date to the forward delivery date.
Also called the theoretical futures price, which equals the spot price continuously compounded at the cost of carry rate for some time interval.
For the sake of transparency and unlike any other online broker we actually have a complete explanation of applied cost of carry on behalf of the market or the customer on open positions held overnight.
Forward prices of equity indices are calculated by computing the cost of carry of holding a long position in the consitutuent parts of the index. This will typically be ...
Negative Carry: The cost incurred when the cost of carry on a security exceeds the yield of that security.
NAV: Net Asset Value.
Definition
Inventory Control
The process of maintaining sufficient inventory measures to meet customer needs, weighed against the cost of carrying inventory to determine an appropriate inventory level.
Ask a Question ...
The Equilibrium price for futures contracts. Also called the theoretical futures price, which equals the spot price continuously compounded at the Cost of carry rate for some time interval.
Related Links: ...
option-adjusted spread, or the extra yield demanded by the security holder to compensate for the mortgage repayment option;
current-coupon spread
volatilities
convexity
cost of carry ...
When purchased by a commercial bank for its portfolio, the bank may receive an 80% tax deduction for the interest cost of carry for the issue. A bond that is bank qualified is also known as a "qualified tax-exempt obligation." ...
In interest rate futures markets, it refers to the differential between the yield on a cash instrument and the cost of funds necessary to buy the instrument. Also referred to as cost of carry or carry.
Full Cary A futures market in which the price difference between delivery months equals the full cost of carrying the commodity.
Futures A financial contract that includes the sale of financial instruments or physical commodities.
Net financing cost Also called the cost of carry or, simply, carry, the difference between the cost of financing the purchase of an asset and the asset's cash yield.
Cost of carry : The interest rate parity, whereby the forward price is de...
Cost of Living Index : Broadly equivalent to Retail Price Index or Consum...
Council of Ministers : The legislative body of the European Economic Comm...
Cost of carryRelated: Net financing cost CounterpartiesThe parties to an interest rate swap. Counterparty riskThe risk that the other party to an agreement will default.
cost of carry "The expenses borne while a position is being held; for example, interest on... cost of debt capital "The interest rate a firm is paying on all of its debt, such as loans and bonds.
 See also: Carry, Market, Future, Trading, Position
  
|
RSS
