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Cost of carry |
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Cost of carryOut-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.Cost of carry Similar MatchesCost of carry marketCost of carry marketApplies 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 the spot commodity to futures, will keep these markets in line with prevailing interest rates. Carrying chargeCarrying chargeThe fee a broker charges for carrying securities on credit, such as on a margin account. Net operating loss carryforwardsNet operating loss carryforwardsApplication of losses to offset earnings in future years. Carrying chargesCarrying chargesThe cost of storing a physical commodity, consisting of interest on the invested funds, insurance, storage fees, and other incidental costs. Carrying costs are usually reflected in the difference between futures prices for different delivery months. When futures prices for deferred contract maturities are higher than for nearby maturities, it is a carrying charge market. A full carrying charge market reimburses the owner of the physical commodity for its storage until the delivery date. Loss Carry Back (Carry Forward)Loss Carry Back (Carry Forward)A tax provision that allows operating losses to be used as a tax shield to reduce taxable income in prior and future years. Losses can be carried backward for up to three years and forward for up to 15 years under current tax codes. Further SuggestionsCash & carryTax loss carryback, carryforward carry forward Net operating loss carrybacks Carryforwards Owner Will Carry Mortgage carry back cash and carry Positive carry carrying broker Carry Carrying Charges Carrying value Carrying costs |
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