carry

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.

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Part of Speech: noun
Synonym(s): cost_of_carry_₁
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Industry/Domain: Financial services
Category: Commodity exchange
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