Carrying

over charges are those which the buyer or seller (as the case may be) has to pay for the privilege of not receiving or delivering stock at the regular time. The charge for non-payment of cash for stock is called contango. A contango is generally paid by bulls and received by bears; but if a stock has been so much oversold that it. is scarce for delivery a charge is made for non-delivery of the stock, which is called a backwardation; this is paid by bears and received by bulls. If the accounts balance the rate is even. 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 awhole 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.