Tag Archives: cost carry futures contract

Understanding Cost of Carry for Nifty and Stock Futures

By | January 12, 2013 10:01 am

WHAT IS COST OF CARRY? In derivates market, the cost of carry (CoC) of a futures contract is the cost incurred on holding positions in the underlying security until the expiry of the futures. The cost includes the risk free interest rate and excludes any dividend payouts from the underlying. CoC  is the difference between… Read More »