Carrying charge

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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.^{[1] [2]}

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

[edit] References

1. ^ Managed Futures
2. ^ Trader Soft