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 instrument and the cost of funds necessary to buy the instrument. Also referred to as cost of carry or carry. Chicago Board of Trade glossary
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The fee a broker charges for carrying securities on credit, such as on a margin account. Also, any component of a futures basis, such as storage costs, interest charges or insurance costs on the underlying interest. Bloomberg Financial Dictionary
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The cost of holding commodities, over and above the purchase price. It includes the cost of storage in warehouses and insurance against damage. When commodities are due to be delivered to fulfil the terms of a futures contract the carrying cost also includes charges for ensuring their quality, including sampling, weighing and repairing damage. Also used to describe a futures market where price differentials between delivery months fully reflect insurance, storage and interest costs.
► See also Futures.
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carrying charge UK US noun [C]
► (also carrying cost) ACCOUNTING a charge added when you buy goods by making regular small payments for them until the full amount owed has been paid: »
If you pay off your credit card balance every month, you don't have to worry about carrying charges.
► TRANSPORT an amount charged for transporting goods: »
The canals were forced to lower their coal carrying charges.
Financial and business terms. 2012.