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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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 method previously followed was termed "Regression/Real Economic Carrying Charge" (RECC).
In that instance, a credit or debit should specifically be applied to the carrying charges of a particular item, or applied generally, if purchase discounts would otherwise be unavailable.
1.266-1(c) provide for an election to capitalize taxes and carrying charges incurred on certain real and personal property.
Chatterjee has been carrying charges of culpable homicide not amounting to murder on his head.
Of course $40 in carrying charges would be added to the total.
Keep too much "just in case" inventory and inventory carrying charges build.
"This assures our shareholders that carrying charges will not skyrocket in the future, while freeing up capital to undertake other repairs and projects that will continue to make Acropolis Gardens a wonderful place to live."
By doing that we're able to save between $140,000 to $150,000 a month in carrying charges," said Membertou Chief Terry Paul.
Nazrisho also had sworn to a judge just last week that his client - who was once engaged to the Malaysian prime minister's daughter - "paid real-estate taxes and other carrying charges on the property."
It added "the costs proposed for recovery are merely reimbursement of actual expenses made for calendar year 2012 and though recovery scheme is deferred in nature, there are no carrying charges calculated and proposed."
263(g), which disallows certain interest and carrying charges related to a straddle.