Definition
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 Carrying Charges and Negative Carry.
Ask a Question ...
Positive Carry
A strategy of holding two offsetting positions, one of which creates an incoming cashflow that is greater than the obligations of the other.
...
Positive Carry - A market position whereby the currency owned pays a higher rate of interest than that of the currency borrowed, resulting in a positive cash flow.
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 Carrying Charges and Negative Carry.
Positive Carry -Where the cost of holding onto a position is lesser than the returns made on the position.
Positive Carry: The gain resulting from the yield earned on a security less the cost of financing that security.
PPI: Producer Price Index. See release details.
Positive carry
Related: Net financing cost
Positive convexity
A property of option-free bonds that the price appreciation for a large downward change in interest rates will be greater (in absolute terms) than the price depreciation for the ...
Positive Carry
A market position held overnight where the currency owned pays a higher interest rate than the one that it is priced against.
Pound ...
Positive Carry (business term)
Related answers:
When comparing the strength of bonds ionic bonds have what kind of bonds and molecular bonds have what kind of bonds? Read answer...
positive carry Condition in which the cost of financing an investment is less than the return... Positive Sloping Triangle With ascending triangles, trend lines converge with a horizontal trend line...
Related: Open contracts Positive carry Related: Net financing cost Positive convexity A property of option-free bonds whereby the price appreciation for a large change in interest rates will be greater (in absolute terms) than the price depreciation ...
amount you owe stop-loss volatility carry If you have positive carry, your position _________ money while it is open, but if you have negative carry, you must _________ interest while the position is open.
The interest cost of financing securities. A positive carry occurs when the return from a security exceeds the financing cost. A negative carry occurs when the financing cost exceeds the return on the security that has been financed.
A positive carry happens when the rate on the securities being financed is greater than the rate on the funds borrowed. A negative carry is when the rate on the funds borrowed is greater than the rate on the securities that are being financed.
If you buy AUD/JPY and held it for a year, you earn a "positive carry" of 4.40%.
Of course, if you sell AUD/JPY, it works the opposite way:
If you sold AUD/JPY and held it for a year, you would earn a "negative carry" of 4.40%.
Another added dimension to trading crosses is the ability to collect substantial amounts of interest (i.e. GBP/JPY, NZD/JPY and other high yielding crosses) as the positive carry created by the interest rate differentials can add to a trader's bottom ...
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. Positive carry means that the yield earned is greater than the financing cost; ...
It is considered "negative carry" when the cost incurred in borrowing to finance the holding of securities exceeds the income from the securities and "positive carry" when the yield of the securities is in excess of the interest cost of the funds ...
The cost of financing a financial instrument (the short-term rate of interest), when the cost is above the current return of the financial instrument. See also Carrying Charge. Opposite of Positive Carry.
Negative Yield Curve
See Yield Curve.
You can be a long term investor and trade for positive carry. You can scalp furiously hoping to pick up a few pips every single day. Or you can trade positionally a few times each month, trying to take advantage of intermediate length themes.
It is a carrying charge market when there are higher futures prices for each successive contract maturity. If the carrying charge is adequate to reimburse the holder, it is called a "full charge." See Negative Carry, Positive Carry, and Contango.
Positive carry means that the yield earned is greater than the financing cost; negative carry means that the financing cost exceeds the yield earned. Net operating marginThe ratio of net operating income to net sales.
Application: The idea is to collect the positive carry, interest and dividends received, minus interest paid.
Pricing: The trade is initially worth about zero, except for small transaction costs.
 See also: Carry, Interest, Trading, Market, Position
  
|
RSS
