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".

BREAKING DOWN '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.

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    A futures contract is an agreement to buy or sell a commodity at a pre-determined price and quantity at a future date in ... Read Answer >>
  3. How do futures contracts roll over?

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