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