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Positive carry
The net cost of holding an asset or maintaining an open position, which consists of financing, storage, insurance, handling or other costs, less any interest or other benefits that may be derived from the asset or the position while such asset is held or until the position is closed.
In the case of physical commodity futures or forward contracts, the forward price is the spot price plus the cost of carry. In the case of securities, the term carry rather than cost of carry is used: if the financing cost is lower than the yield earned, the asset is said to have a positive carry. If the financing cost is higher than the yield earned, the asset is said to have a negative carry.
Translations
Synonyms and variations
- Carry
- Carrying charges
- Carrying cost
- COC
- Cost of carry
- Negative carry