Carrying Charges

Carrying Charges

This Issue in United States

Concept of Carrying Charges in Futures Trading

In this context of financial law, the following is a definition of Carrying Charges: Also called Cost of Carry. 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. 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.


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