FREE Guide - 5 Chart Patterns You Need to Know!

Carrying Charge

What does Carrying Charge mean?

Carrying charge, also known as carrying cost, means the cost or charge involved in holding any financial product or physical commodity over a period of time. This cost is a combination of interest charged on the borrowed fund, insurance, storage charges for physical goods or any other related fund.

Futures Knowledge Explains Carrying Charge

In a developed economy, the difference in the yield of Interest Rate Future and the yield on Spot is the carrying charge. In most cases, the carrying charge is a risk free return. Higher cost of carry erodes the profit margin.

Get Your FREE Technical Analysis Guide!
Timing is everything, and with this guide, you'll learn how technical analysis can help find the right time to enter and exit your futures trades. Nearly 30 explanations and examples of the most popular technical analysis tools are all in this one handy guide. It's like having a futures trading mentor at your side!