Home » Cost of Carry

Cost of Carry

« Back to Glossary Index

The cost of maintaining a trading position is often referred to as the cost of carry or carrying charge.

It can come in many forms, including interest on margins or the loans used to make the trade or the cost of storage and insurance associated with holding a commodity.

In forex, there are several costs that can arise from keeping a position open.

Changes in interest rates can require a charge on your account, or overnight funding charges can be incurred.

Often, the cost of carry will already be included in the price of opening a new position. Usually, it varies depending on the type of trade and asset being traded.

Related
Parabolic

Parabolic describes a market that moves a great distance in a very short period of time, frequently moving in an accelerating Read more

Bitcoin Block

Blocks are data structures within the blockchain database, where transaction data in a cryptocurrency blockchain are permanently recorded. A block records Read more

Monetary Policy

Monetary policy refers to the actions taken by a nation’s central bank to influence the availability and cost of money and credit to Read more

XM Bonus