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. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center