Carrying charge

(redirected from carrying cost)
Also found in: Dictionary, Thesaurus, Legal, Wikipedia.

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 ?
Even when they use WACC to calculate the inventory capital carrying charge, companies often make the mistake of adding the before-tax percentage inventory noncapital carrying costs (like our example of 10 percent) to the after-tax cost of capital (say 9 percent) to get the total carrying cost (19 percent).
The important tradeoff in credit investigation policy is between the costs of the investigation and the expected level of bad debt and accounts receivable carrying costs that result from credit-granting decisions.
Although the inventory planner may be very efficient at considering changes in traditional carrying costs (such as warehouse space rental), changes in the company's income tax liability associted with holding inventory may escape his or her notice.
business inventory carrying costs ($ billions) 2005 2006 % change Interest 58 93 60.
This figure does not include the carrying costs of the building's private owner or the legal fees of either party.
Instead of producing a positive cash flow for the building, HUD seems willing to take a $50 million hit to demolish the building, relocate its tenants, build the new town-houses and continue to cover Hill Manor's mortgage and carrying costs," said Randolph J.
The reduced carrying costs ensure a strong financial outlook for the community over the next ten years and should greatly enhance the financial stability of this community and the value of individual cooperative apartments.