Cost of Carry Information

Hi Experts,

I came across a term called "cost of carry".

Can any 1 explain me in easy way............what does the cost of carry means.

And how to compute cost of carry in F&O segment.

Thanks in Advance,
Durai007

You can always look it up on Google
Cost_of_carry

In Futures contracts like the Nifty , your cost of carry would be the interest on your margin money that you are losing.
In commodities contracts, the cost of carry includes the storage and transport costs.
One way of estimating the cost of carry is to look at the closing prices of two consecutive month Far Contracts which have less or no trades. The price difference between the two contracts will be the approximate cost of carry.