Source: https://mochatrade.com/learn/glossary/cost-of-carry

# Cost of carry
URL: https://mochatrade.com/learn/glossary/cost-of-carry
Last modified: 2026-10-17

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](https://mochatrade.com/learn/start-here/quiz). On a perpetual the carry is paid as funding, on a different rhythm; [one held position](https://mochatrade.com/learn/start-here/nvidia-trade-walkthrough) shows it.

## Related terms

- Margin interest: https://mochatrade.com/learn/glossary/margin-interest
- Overnight financing / swap fee: https://mochatrade.com/learn/glossary/overnight-financing-swap-fee
- Strike price and expiry: https://mochatrade.com/learn/glossary/strike-price-and-expiry
- Call option: https://mochatrade.com/learn/glossary/call-option
- Perpetual futures: https://mochatrade.com/learn/glossary/perpetual-futures
- Spot price vs futures price: https://mochatrade.com/learn/glossary/spot-price-vs-futures-price

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