Carrying charge

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Related to Carrying charge: Carrying Charge Market

Carrying charge

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.

Carrying Charge

1. The cost of storing a commodity over a period of time. It includes incidental costs, insurance coverage, and the physical cost of storage. It does not include depreciation, if any. The carrying charge is incorporated to the price of a commodity on the futures market.

2. In interest rate futures, the difference between the cost of purchasing an instrument and its yield. See also: Profit, Loss.

3. Fees a firm charges for making a loan. The largest single carrying charge is the interest, but it also includes charges such as an origination fee or an application fee. See also: All-in cost.
References in periodicals archive ?
The specific rules governing operating costs and carrying charges were not changed by the 1986 Tax Act.
To avoid foreclosure or pricey assessments when owners are delinquent in paying their fees, condos should have three times the entire building's monthly carrying charges in a reserve fund, said Cholst.
The magnitude of the district's debt burden is additionally tempered by its ability to service debt carrying charges from annual surpluses versus unrestricted reserves.
While the issuance of this additional debt will pressure the university's debt burden, the ability of OSU to manage debt carrying charges from annual operating surpluses versus unrestricted reserves helps to mitigate the risk of overleveraging.
28 million and carrying charges of $275,399 a year.
Principal amortization on the governmental project and gaming enterprise bonds does not begin until 2012 and 2013, respectively, providing ample time for ramp up of the California casino project before debt service carrying charges increase.
As a result, TNMP reduced the total accrued recovery of carrying charges for income statement recognition for the period January 1, 2002, through December 31, 2004, by $4.
Approximately 55 percent is the "hard" cost of construction, with "soft" costs such as carrying charges and design fees comprising the remaining 25 percent.
Offsetting risks include a moderately high debt burden, above average debt service carrying charges, and ongoing operating and capital pressures associated with a somewhat accelerated growth rate.
4 million increase at TNMP is primarily attributable to the accrued interest represented by carrying charges of $31.
DHCR also establishes the level of carrying charges needed to maintain these developments and generally supervises their management operations.
Leona's agreement to defer management fees in the event that the cash flows are insufficient to meet annual debt carrying charges was viewed favorably in the rating process.