Full Carry

AAA

DEFINITION of 'Full Carry'

A futures market in which the price difference between contracts with two different delivery months equals the full cost of carrying the commodity from the delivery month of the first contract to the next. Carrying costs include interest, insurance and storage. Also known as "full carry market" or "full carrying charge market".

INVESTOPEDIA EXPLAINS 'Full Carry'

For example, let's say commodity X has a May 05 futures price of $10/unit. If the cost of carry for commodity X is $0.50/month and the June 05 contract is trading at $10.50/unit the price indicates a full carry, or in other words the contract represents the full cost associated with the holding the commodity for an additional month.

RELATED TERMS
  1. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  2. Cost Of Carry

    Costs incurred as a result of an investment position. These costs ...
  3. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  4. Futures Market

    An auction market in which participants buy and sell commodity/future ...
  5. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  6. Futures

    A financial contract obligating the buyer to purchase an asset ...
Related Articles
  1. Using Open Interest To Find Bull/Bear ...
    Options & Futures

    Using Open Interest To Find Bull/Bear ...

  2. Intro To Open Interest In The Futures ...
    Options & Futures

    Intro To Open Interest In The Futures ...

  3. Interpreting Volume For The Futures ...
    Options & Futures

    Interpreting Volume For The Futures ...

  4. Vertical Bull and Bear Credit Spreads
    Options & Futures

    Vertical Bull and Bear Credit Spreads

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center