Cost of carry (CoC)

M

mujahid_snd

New Member
#1
#1
Cost of Crry

hi ,

Cost of Carry Formula is required with an Example .

For realiance futures ..

Let me know how we can calculate the Cost of Carry of a particular future


Regards
Mujahid
 
MurAtt

MurAtt

Well-Known Member
#5
#5
Re: cost of carry

I am not 100% sure but this is what I think it is.

The cost incurred to extend your buy/sell into the next series i.e. say you are long Nov Nifty Futures @ 5010. On expiry Nov series is trading at 5135 and Dec is at 5143 then you have to sell Nov and buy December if you need to 'carry' your trade over to next month ..

So your cost of carry is 5143-5135=8pts.

Smart players carry earlier .. i.e. they sell current month (if they are long and invese if they are short) just before a minor dip and re-enter next month series just as the dip is about to reverse .. that way they carry w/o cost, rather even make some money on that.

Hope this helps :)
 
A

AW10

Well-Known Member
#9
#9
What is making CoC so interesting ? You are 3rd person asking for it in last 1 days.

Chk the details in this thread..
http://www.traderji.com/futures/23129-cost-crry.html

IMO, in real trading, nobody cares for this.. It is good for simple academic interest.
 
You must log in or register to reply here.
Thread starter Similar threads Forum Replies Date
M Tips to reduce trading cost General Trading & Investing Chat 7
Loss_Lover Carrying cost in a Futures Contract Futures 16
D Cost of Carry Information Fundamental Analysis 1
0 How to Calculate the " Cost of Carry " in Real Time ? Derivatives 10
L Understanding Cost Of Carry Futures 8

Similar threads