negative carry

Definitions

Accounting

• noun a deal where the cost of finance is more than the return on the capital used

Forex

• A situation that occurs when the cost of holding a position is greater than the gains. For example, if U.S. interest rates are below Australian rates, then holding a short AUD/USD position will involve negative carry that is paid away whenever the position is rolled over, irrespective of whether the AUD/USD forex rate goes up or down.

Nearby Definitions of “negative carry”

• neck
• Ned Kynaston
• need
• needle
• negative
• negative carry
• Neil LaBute
• Neil Simon
• Nell Gwynn
• Neptune
• nerd

Contexts for “negative carry”

2 definitions in context
• Accounting
• Forex