What does cost of carry mean?
Definitions for cost of carry
cost of car·ry
This dictionary definitions page includes all the possible meanings, example usage and translations of the word cost of carry.
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Cost of carry
The cost of carry or 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. If long, the cost of carry is the cost of interest paid on a margin account. Conversely, if short, the cost of carry is the cost of paying dividends, or rather the opportunity cost; the cost of purchasing a particular security rather than an alternative. For most investments, the cost of carry generally refers to the risk-free interest rate that could be earned by investing currency in a theoretically safe investment vehicle such as a money market account minus any future cash-flows that are expected from holding an equivalent instrument with the same risk. Storage costs should be added to the cost of carry for physical commodities such as corn, wheat, or gold.
Numerology
Chaldean Numerology
The numerical value of cost of carry in Chaldean Numerology is: 5
Pythagorean Numerology
The numerical value of cost of carry in Pythagorean Numerology is: 8
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"cost of carry." Definitions.net. STANDS4 LLC, 2023. Web. 6 Dec. 2023. <https://www.definitions.net/definition/cost+of+carry>.
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