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 ?
Convergent Communications Web site is located at http://www.
Convergent has also expanded its offering to include mid-rise, high-rise and type-1 building projects as well.
Convergent president Nick Sabardin, BS, MBA, graduated from the prestigious Sorbonne University in Paris, France, before spending several years as a business consultant to some of France's largest corporations including AXA Insurance, Vivendi, SNCF, Pinault-Printemps (PPR), and ADP.
Polkomtel is a good example of the kind of operator where Intec Convergent Billing is an ideal choice for a major billing upgrade project," said Kevin Adams.
Transparent Application Failover' functionality, which allows Intec Convergent Billing Commerce Engine instances to automatically failover to a backup Oracle server in the case of a main database server failure, effectively reducing the number of backup servers needed.
Intec is a world market leader in convergent billing systems, inter-carrier billing and mediation.
OTC BB: DUVT, XETRA: DUV) is a publicly traded holding company that initiates and develops strategic investments in next-generation convergent medical technologies.
Convergent, a unit of Technicolor Network Services and part of the Services division of Thomson (Euronext Paris: 18453)(NYSE: TMS), today announced the release of Prodokol(TM), a unique software platform that enables Convergent customers to efficiently manage targeted marketing and advertising campaigns to unique audiences.
The renewed agreement continues the licensing, maintenance, and support of Convergys' ICOMS convergent voice, video, and data billing and customer care solution for RCN.
NUREMBERG, Germany -- Digital Signal Processing Luminary Highlights Embedded Convergent Processing's New Frontier During Industry Conference and Continues Discussion Online
CINCINNATI & DJAKARTA -- Indonesia's premier cellular and wireless network operator Telkomsel has gone live with the first phase of Siemens' (NYSE:SI) market-leading, real-time, convergent charging solution, charge@once, that features Infinys(TM) Rating software from Convergys Corporation (NYSE:CVG).