Convergence

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Convergence

The movement of the price of a futures contract toward the price of the underlying cash commodity. At the start, the contract price is usually higher because of time value. But as the contract nears expiration, and time value decreases, the futures price and the cash price converge. More generally, convergence trading involves taking two related assets that have different prices with the expectation that prices will converge (the cheaper asset is purchased and the more expensive is sold short).

Convergence

The fact that the futures price and the spot price for a given asset approach one another as a futures contract on that asset approaches maturity. At maturity, the two prices should be equal. The existence of convergence is the basis for the theory that forward rates equal future spot rates, though this idea is more controversial.

convergence

The process by which the futures price and the cash price of an underlying asset approach one another as delivery date nears. The futures and cash prices should be equal on the delivery date.
References in periodicals archive ?
2max]] %from (21), (22) % abs(ea-ea)<1e-7 %recheck convergency if (no limitations) print i,x1 min(z1),x1, x1 max v1(z1,z2,x1,x2), x2 min(z2), x2, x2 max v1(z1,z2,x1,x2),a w,ea, [e.
New media enjoys five distinctive characteristics: digitality, convergency, interactivity, hypertextuality, and virtuality (Chen & Zhang, 2010; Flew, 2005; Lister, Dovery, Giddings, Grant, & Kelly, 2009).
At the same time as the Commission finally received, on 15 March, Lithuania's official request for the publication of an intermediary individual convergency report in anticipation of joining the single currency on 1 January 2007, Joaquin Almunia has given Slovenia full marks.
USB Connect is yet another proof of Orange Business Services commitment to developing a truly convergent solutions portfolio, adding mobile-PC telephony convergency into the game.
We also compare the recovering convergency of the matrix completion method and the GS method.
We notice from these figures that the convergency of the solutions obtained by applying the HAM is reached by taking into account only a few number of perturbative terms in the solutions (17).