Carrying charge

Carrying charge

A carrying charge is the cost of storing a physical commodity, such as grain or metals, over a period of time. The carrying charge includes insurance, storage and interest on the invested funds as well as other incidental costs. In interest rate futures markets, it refers to the differential between the yield on a cash instrument and the cost of the funds necessary to buy the instrument. Also referred to as cost of carry. [ [http://www.managedfutures.com/managed_futures_glossary.html Managed Futures] ] [ [http://www.trader-soft.com/option-trading/option-glossary/c.html Trader Soft] ]

The interest expense on money borrowed to finance a margined securities position.

References


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Look at other dictionaries:

  • carrying charge — ☆ carrying charge n. 1. interest or other extra charge paid on the balance owed in installment buying 2. the costs associated with property ownership, as taxes, upkeep, etc …   English World dictionary

  • carrying charge — index cost (price), maintenance (upkeep) Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • carrying charge — For physical commodities such as grains and metals, the cost of storage space, insurance, and finance charges incurred by holding a physical commodity. In interest rate futures markets, it refers to the differential between the yield on a cash… …   Financial and business terms

  • carrying charge — UK / US noun [countable] Word forms carrying charge : singular carrying charge plural carrying charges business British a charge for storing or delivering a customer s goods …   English dictionary

  • carrying charge — {n.} An extra cost added to the price of something bought on weekly or monthly payments. * /The price of the bicycle was $50. Jim bought it for $5.00 a month for ten months plus a carrying charge of $1 a month./ …   Dictionary of American idioms

  • carrying charge — {n.} An extra cost added to the price of something bought on weekly or monthly payments. * /The price of the bicycle was $50. Jim bought it for $5.00 a month for ten months plus a carrying charge of $1 a month./ …   Dictionary of American idioms

  • carrying\ charge — noun An extra cost added to the price of something bought on weekly or monthly payments. The price of the bicycle was $50. Jim bought it for $5.00 a month for ten months plus a carrying charge of $1 a month …   Словарь американских идиом

  • carrying charge — Charge made by creditor, in addition to interest, for carrying installment credit. Under consumer credit protection statutes, full disclosure of all such service charges is required. See Truth in Lending Act. See also carrying costs …   Black's law dictionary

  • carrying charge — Charge made by creditor, in addition to interest, for carrying installment credit. Under consumer credit protection statutes, full disclosure of all such service charges is required. See Truth in Lending Act. See also carrying costs …   Black's law dictionary

  • carrying charge — noun 1. charge made for carrying an account or for merchandise sold on an installment plan • Hypernyms: ↑charge 2. the opportunity cost of unproductive assets; the expense incurred by ownership • Syn: ↑carrying cost • Hypernyms: ↑opportunity cost …   Useful english dictionary

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