Convergence

(redirected from convergent)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.
Related to convergent: convergent thinking, Convergent Technologies, Convergent sequence, Convergent series

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 ?
com), a leading provider of next generation converged services platforms and applications for communications networks, announced today that Telefonica Moviles EspaSa (TME), the mobile operator of Telefonica in the Spanish market, has selected Telenity and Datatronics for commercial deployment of next generation convergent services platform and services to a subscriber base of over 21 million in Spain.
Convergent is a private company based in Lowell, Massachusetts and is a provider of broadband infrastructure solutions for data and voice networks and a supplier of service creation softswitches and applications for the global telecommunications service provider marketplace.
Steele comes to Convergent Acquisitions & Development, Inc with 19 years experience in new home sales with builders including David Weekly Homes, Centex Homes, Saussy Burbank and Eastwood Homebuilders.
The proposed relationship will allow Convergent Communications to offer its clients best-in-class e-commerce solutions.
We've set a record this year for demand of non-owner occupied real estate," explains Ray Peeples, Vice President of Convergent Acquisitions and Development, Inc.
Fontaine, like the majority of our EMS customers, expressed its satisfaction with Convergent Communications' capabilities by increasing its existing contract with us," said John R.
We have established a reputation for technical innovation in areas like next-generation services and we believe the capabilities of Intec Convergent Billing are important to our leadership in the Polish market.
Evans, chairman and chief executive officer of Convergent Communications.
Revenue Accounting and Reporting Functionality - Revenue accounting and reporting capabilities represent a significant component of the Intec Convergent Billing v6.
Enterprise Network Service (ENS), a Convergent Communications signature offering, allows customers to gain and maintain complete control of their communications without having to own and support the infrastructure.
GUPP Technologies Inc, (GUPP), a subsidiary of 3P International Corporation Ltd (3P), has selected a la Mobile's Convergent Linux Platform to be the software engine that drives its Dual-Mode VoWiFi/GSM Smartphone to be offered under the brand name GUPP(TM).
18 /PRNewswire/ -- Convergent Communications, an Enterprise Network Carrier(TM) (ENC) providing a full suite of integrated data-telephony services, has signed an Enterprise Network Services (ENS) agreement with EMCO Enterprises, Inc.