C
Carrying Charge Market
C
Carrying Charge Market
A forward or futures
market
in which the forward price is higher than the
spot price
by approximately the net cost of purchasing the spot
commodity
or security and storing and/or financing it until the
settlement date
of the
futures contract
. The opposite of a
Backwardation
Market. Also called
Contango
(1). See
Basis
(1),
Forwardation
. See also Backwardation (1).
Glossary
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C