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Finance Dictionary and Glossary of Investment Terms
Cost of carry
Definition 1.
Out-of-pocket costs incurred while an investor has an investment position. Examples include interest on long positions in margin account, dividend lost on short margin positions, and incidental expenses. Related: Net financing cost.
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Definition 2.
Costs incurred because of an investment position.
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Definition 3.
Expenses incurred while a position is being held; for example, interest on securities bought on margin, dividends paid on short positions, and other expenses.
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