understanding financial jargon
Cost of Carry
The 'Cost of Carry' (or carry costs) is the total cost of storage, insurance and financing costs that a seller of a futures contract must bear while waiting to deliver the asset that the buyer has purchased from the seller.
The term 'cost of carry' is most often used in the commodities market where physical produce such as gold, grain, livestock and other items are traded. However the term can also apply for any asset where there is a cost of holding the asset while waiting to deliver it.
What to do if you need more help
If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.
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