Cost of carry

Cost of carry is what it costs to hold a position over time: storage, insurance and interest, minus any income. It is why futures usually sit above spot and the gap shrinks to zero at expiry, as the Module 0 quiz shows. On a perpetual the carry is paid as funding, on a different rhythm; one held position shows it.

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In the help centreSee how leverage and margin work on Mochatrade
  • Margin interestMargin interest is what a US broker charges, daily, on cash it lends you to buy shares. A perpetual contract has no…
  • Overnight financing / swap feeOvernight financing, or a swap fee, is the daily interest a broker charges for holding a leveraged position past the…
  • Strike price and expiryThe strike price is where an option pays; expiry is when a contract ends. Expiry is what ties a future to the real…
  • Call optionA call option is the right to buy at the strike before expiry. Strike 24,200 and premium 80 means profit only above…
  • Perpetual futuresPerpetual futures are contracts that track an asset's price with no expiry date. Expiry is what pulls a normal future…
  • Spot price vs futures priceThe spot price is for delivery now; the futures price is for delivery later, and the gap is the cost of carry, which…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

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