Full Carry
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". |
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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. |
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