TRADING GLOSSARY
Cost of carry
Cost of carry is the expense of financing and holding an asset over time, including costs such as interest, storage and insurance. In commodity pricing, these costs help explain differences between spot and futures prices, alongside the benefits of holding physical inventory.
EXAMPLE
In a hypothetical example, storing a commodity costs $20 and financing it costs $30 over a month, giving a total carrying cost of $50.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure