- cost of carry
- (or carry) 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. Chicago Board of Trade glossary————The cost of financing an asset. If the cost of carry is smaller than the interest received from the asset by the investor, the investor has a positive carry. Conversely, if the cost of carry is larger than the interest received from the asset by the investor, the investor has a negative carry. American Banker Glossary————Out-of-pocket costs incurred while an investor has an investment position. Examples include interest on long positions in margin account, dividend lost on short margin positions, and incidental expenses. Related: net financing cost. Bloomberg Financial Dictionary————The costs incurred in buying an asset today and carrying it through to the delivery day of a future. Such costs may include finance costs, insurance, storage etc. and will be reduced by the benefits of holding certain assets such as dividends and coupons. Dresdner Kleinwort Wasserstein financial glossary
* * *The difference between the interest generated on a cash instrument such as a bond or a Treasury bill and the cost of funds to finance the position.
Financial and business terms. 2012.
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Cost of carry — This article is about the financial term. For the marketing term, see Carrying cost. The cost of carry is the cost of carrying or holding a position. If long, the cost of carry is the cost of interest paid on a margin account. Conversely, if… … Wikipedia
Cost Of Carry — Costs incurred as a result of an investment position. These costs can include financial costs, such as the interest costs on bonds, interest expenses on margin accounts and interest on loans used to purchase a security, and economic costs, such… … Investment dictionary
Cost of carry — Related: Net financing cost * * * The difference between the interest generated on a cash instrument such as a bond or a Treasury bill and the cost of funds to finance the position. ► See also Positive Carry, Negative Carry … Financial and business terms
cost-of-carry — noun Finance the difference between the cost and the financial benefit of holding a particular asset for a specified period … English new terms dictionary
cost of carry — The degree to which the costs of holding a financial position exceed the return from it … Accounting dictionary
cost-of-carry market — Applies to derivative products. futures contracts trade in a cost of carry market where the underlying commodity can be stored, insured, and converted into the future easily and inexpensively. arbitrageurs, because of the ease of switching from… … Financial and business terms
Carry (investment) — The carry of an asset is the return obtained from holding it (if positive), or the cost of holding it (if negative) (see also Cost of carry). For instance, commodities are usually negative carry assets, as they incur storage costs or may suffer… … Wikipedia
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carry — [kar′ē] vt. carried, carrying [ME carien < Anglo Fr carier < NormFr carre, CAR1] 1. to hold or support while moving [to carry a package] 2. to take from one place to another; transport, as in a vehicle [to carry the mail] 3. to hold … English World dictionary
Carry-save adder — MotivationA carry save adder is a type of digital adder, used in computer microarchitecture to compute the sum of three or more n bit numbers in binary. It differs from other digital adders in that it outputs two numbers of the same dimensions as … Wikipedia