Margin Account

What is the meaning of Cost of Carry?

Cost of Carry refers to the difference between the actual cost of an asset and the returns it generates over a particular period of time in capital markets. It is also said to be the cost of holding a position.  It is used for pricing of futures contracts and is also referred to as the […]

Advertisement

What is the meaning of Call Money Rate?

Call Money Rate stands for the interest rate on short-term loans which are given by banks to brokers for funding of margin accounts. These do not have any repayment schedule and has to be repaid on demand. Although trading on margins is risky as it is done with borrowed money but then there is obvious […]

Advertisement