What is the cost of carry in derivatives?

Could you please explain what the cost of carry in derivatives entails? I'm particularly interested in understanding how it impacts the pricing and profitability of various derivative products. Is it a fixed cost, or does it vary depending on market conditions? How do traders factor it into their decision-making processes, and what strategies do they employ to mitigate its potential negative effects? Additionally, could you elaborate on the relationship between the cost of carry and other factors such as interest rates, storage costs, and the underlying asset's price movements?