Carrying charge

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Related to carrying cost: Carrying Cost Of Inventory, Ordering Cost, Shortage cost

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 ?
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.
Critical inventory optimization solutions can not only free up significant capital tied to inventory carrying costs but also ensure asset uptime for industries that operate around the clock and in remote locations," said Bill Polk, Research Director, AMR Research.
CPL's total pre-tax STP deferrals for the periods affected were approximately $492 million, of which $270 million represents carrying costs.
During the quarter, nearly $5 million of other real estate owned was sold at prices approximating the carrying costs established at year-end 1993.
With the release of these products, companies can experience greater return on assets, improvements in transportation operations, lower inventory carrying costs and shorter order to cash cycle times.
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.
However, the district court did not allow the inclusion of the deferred Oklaunion carrying costs in rate base.
Rock-Tenn Company expects to incur cash operating and restructuring costs of approximately $3 million, which will include severance, facility lease and carrying costs net of sublease rentals and equipment relocation costs, and to incur asset impairment costs of approximately $2 million.
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.
A Texas District Court upheld the Public Utilities Commission of Texas' (PUCT) 1987 order allowing deferred accounting, but the excluded deferred carrying costs from rate base was negative.
Sophisticated service parts forecasting and planning is mission critical for companies looking to meet or exceed service commitments while minimizing inventory carrying costs.
Unsecured creditors would receive 98 percent of their allowed claims, plus carrying costs.