Meaning COST-OF-CARRY MARKET: Applies to derivative products. Futures contracts trade in a "cost-of-carry market" where the underlying commodity can be stored, insured, and converted into the future easily and inexpensively. Arbitrageurs, because of the ease of switching from the spot commodity to futures, will keep these markets in line with prevailing interest rates
More terms such as Cost-of-carry market in Dictionary C.
- Definition Convertible 100:
- Examples of the 100 convertibles of greatest institutional importance. Weighted by issue size, it measures the performance of its components against that of their underlying common stock and against other cost-of-carry market definition.
- Definition Churning:
- Examples Excessive trading of a client's account in order to increase the broker's commissions cost-of-carry market explain.
- Definition Cash Commodity:
- Examples The actual physical commodity, as distinguished from a futures contract cost-of-carry market what is.
- Definition Contramarket Stock:
- Examples general equities, stock that tends to go against the trend of the market as a whole, such as a commodities-related stock or one in an industry out of favor with investors in a bull market cost-of-carry market meaning.
- Definition Continuous Net Settlement (CNS):
- Examples Method of securities clearing and settlement using a clearing house, which matches transactions to securities available, resulting in one net receive or deliver position at the end of the day cost-of-carry market abbreviation.
