The cost of carry is the amount of money you may have to spend in order to keep a position. This can take the form of overnight funding charges, interest payments on margin accounts and forex transactions, or the costs of storing any commodities on futures contract delivery.

The "cost of carry" refers to the expenses incurred from holding a financial asset over time. In forex, it typically relates to the interest rate differential between two currencies in a currency pair. When traders hold a position overnight, they either pay or receive interest based on the interest rates of the two currencies involved.

If you hold a currency with a higher interest rate compared to the currency you sold, you might earn interest. Conversely, holding a currency with a lower interest rate may result in paying interest, which becomes a cost of carry.

For other financial assets like commodities, cost of carry includes storage, insurance, and financing costs. In all cases, it reflects the expense of maintaining an investment over a period.