Filter by Categories
Accounting
Banking

Exchanges




Negative Carry


A carry (net financing cost) in which the cost of borrowing money to fund an asset or investment (e.g., a security) exceeds the profit (current yield) earned:

Negative carry: financing cost > financing profit

In the context of futures and margin trading, the effect of negative carry makes the theoretical price of the position (futures) a selling price at a premium to an asset’s cash price.



ABC
This section covers a wide-ranging array of terms and concepts, among others, in the area of exchanges and financial marekts at large ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*