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 ?
With the WACC in the equation, we can now combine the inventory noncapital carrying charge with the capital total costs to estimate the total cost of holding inventory.
The total costs of inventory are the sum of the carrying charges and the ordering costs.
Interest and carrying charges properly allocable to personal property that is part of a straddle must be capitalized.
Operating costs and carrying charges that are considered to be ordinary and necessary" expenses of managing, maintaining, and conserving forest land may be wholly or partly deducted (expensed) each year as these costs are incurred-provided the woodland activity is done for profit and the expenditures are directly related to the income potential of the property.
The pharmacist-customer typically reduces the ratio of inventory to sales, thus radically reducing McKesson's inventory and the attendant carrying charges.
Limited Tenders are invited for Dd Carrying Charges From Bhutan To Njp Top
The Adeline anticipates a 25-year 421-a tax abatement and some of the lowest monthly carrying charges and real estate taxes in the city.
He predicted that interest rates and the availability of credit will influence would-be buyers more than increasing carrying charges.
312(n)(1) also requires capitalization of "construction period carrying charges," which include (1) interest on debt incurred or continued to acquire, construct or carry property, (2) property taxes and (3) similar carrying charges to the extent such charges are attributable to the property's construction period.
70-539, a corporation that was engaged in developing real estate capitalized interest, taxes, and carrying charges in the tax basis of its property in the first three tax returns it filed.