Full Charge

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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.

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RELATED FAQS
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    Commodity spot prices and futures prices are different quotes for different types of contracts. The spot price is the current ... Read Full Answer >>
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    Commodity spot prices indicate future price movements because commodity futures prices are calculated using spot prices. ... Read Full Answer >>
  3. Where did market to market (MTM) accounting come from?

    Mark to market accounting has been around in concept since the stock market began; however, it was not officially part of ... Read Full Answer >>
  4. Why is market to market (MTM) accounting considered controversial?

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  5. What is the difference between economic value and market value?

    The difference between market value and economic value is that the former represents the minimum amount the customer is willing ... Read Full Answer >>
  6. How do I set a strike price for a future?

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