carrying charge

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. Also referred to as cost of carry or carry. Chicago Board of Trade glossary
————
The fee a broker charges for carrying securities on credit, such as on a margin account. Also, any component of a futures basis, such as storage costs, interest charges or insurance costs on the underlying interest. Bloomberg Financial Dictionary

* * *

carrying charge carrying charge charge1

* * *

   The cost of holding commodities, over and above the purchase price. It includes the cost of storage in warehouses and insurance against damage. When commodities are due to be delivered to fulfil the terms of a futures contract the carrying cost also includes charges for ensuring their quality, including sampling, weighing and repairing damage. Also used to describe a futures market where price differentials between delivery months fully reflect insurance, storage and interest costs.
   ► See also Futures.

* * *

carrying charge UK US noun [C]
(also carrying cost) ACCOUNTING a charge added when you buy goods by making regular small payments for them until the full amount owed has been paid: »

If you pay off your credit card balance every month, you don't have to worry about carrying charges.

TRANSPORT an amount charged for transporting goods: »

The canals were forced to lower their coal carrying charges.


Financial and business terms. 2012.

Look at other dictionaries:

  • carrying charge — ☆ carrying charge n. 1. interest or other extra charge paid on the balance owed in installment buying 2. the costs associated with property ownership, as taxes, upkeep, etc …   English World dictionary

  • carrying charge — index cost (price), maintenance (upkeep) Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • carrying charge — UK / US noun [countable] Word forms carrying charge : singular carrying charge plural carrying charges business British a charge for storing or delivering a customer s goods …   English dictionary

  • Carrying charge — A 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… …   Wikipedia

  • carrying charge — {n.} An extra cost added to the price of something bought on weekly or monthly payments. * /The price of the bicycle was $50. Jim bought it for $5.00 a month for ten months plus a carrying charge of $1 a month./ …   Dictionary of American idioms

  • carrying charge — {n.} An extra cost added to the price of something bought on weekly or monthly payments. * /The price of the bicycle was $50. Jim bought it for $5.00 a month for ten months plus a carrying charge of $1 a month./ …   Dictionary of American idioms

  • carrying\ charge — noun An extra cost added to the price of something bought on weekly or monthly payments. The price of the bicycle was $50. Jim bought it for $5.00 a month for ten months plus a carrying charge of $1 a month …   Словарь американских идиом

  • carrying charge — Charge made by creditor, in addition to interest, for carrying installment credit. Under consumer credit protection statutes, full disclosure of all such service charges is required. See Truth in Lending Act. See also carrying costs …   Black's law dictionary

  • carrying charge — noun 1. charge made for carrying an account or for merchandise sold on an installment plan • Hypernyms: ↑charge 2. the opportunity cost of unproductive assets; the expense incurred by ownership • Syn: ↑carrying cost • Hypernyms: ↑opportunity cost …   Useful english dictionary

  • carrying charge — 1. a charge made for carrying an account, usually computed as a percentage of the principal owed. 2. cost incurred while an asset is unproductive. [1890 95, Amer.] * * * …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.