A carry (net financing cost) in which the profit (current yield) earned from a funded asset/ investment (e.g., a security) exceeds its financing cost- i.e., the cost of borrowing money to fund it:
Positive carry: financing profit > financing cost
In the context of futures and margin trading, the effect of positive carry makes the theoretical price of the position (futures) a selling price at a discount to an asset’s cash price.
