Full Charge

AAA

DEFINITION of 'Full Charge'

The event in which the price of a futures contract covers all of the carrying charges of the underlying asset, such as storage and insurance. Also referred to as a "full carry".

INVESTOPEDIA EXPLAINS 'Full Charge'

If the purchase price of the futures contract is high enough to cover all of the expenses faced by the physical holder of the asset, then the contract is known to have a full charge. This is beneficial to the physical holder of the underlying asset.

RELATED TERMS
  1. Demurrage

    A term used in currency trading to denote the cost of currency ...
  2. Positive Carry

    A strategy of holding two offsetting positions, one of which ...
  3. Carrying Charge

    Cost associated with storing a physical commodity or holding ...
  4. Carrying Charge Market

    A futures market where contracts with maturities further into ...
  5. Cash Commodity

    In futures trading, the cash commodity is delivered for payments. ...
  6. Cash Price

    The actual amount of money that is exchanged when commodities ...
Related Articles
  1. Commodities: The Portfolio Hedge
    Active Trading

    Commodities: The Portfolio Hedge

  2. Futures Fundamentals
    Insurance

    Futures Fundamentals

  3. Stock Safety: Top 3 Ways to Limit Your ...
    Options & Futures

    Stock Safety: Top 3 Ways to Limit Your ...

  4. Can You Buy Stock Insurace? 3 Strategies ...
    Options & Futures

    Can You Buy Stock Insurace? 3 Strategies ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center