TeachMeFinance.com - explain Carry-over
Carry-over -- On the London Stock Exchange carry-over is
a term used to signify the aggregate of the contracts in one
or in all stocks continued or carried over to the next settlement. The carry-over as a whole designates the collective operation
by which the speculative position open for the rise or fall is
continued from one settlement to the next. When the position
open is for the rise speculators have to borrow money and
pay a contango rate to money lenders ; when the position open
is for the fall speculators have to borrow stock from the
holders and pay them a backwardation. It is, however, a comparatively
rare occurrence that a stock is so much oversold
by speculators that a backwardation can be exacted from them.
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