Meaning 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 higher because of time value. But as the contract nears expiration, and time value decreases, the futures price and the cash price converge
More terms such as Convergence in Dictionary C.
- Definition Country Economic Risk:
- Examples Developments in a national economy that can affect the outcome of an international financial transaction convergence definition.
- Definition Country Selection:
- Examples A type of active international management that measures the contribution to performance attributable to investing in the better-performing stock markets of the world convergence explain.
- Definition Capital Budget:
- Examples A firm's planned capital expenditures convergence what is.
- Definition Cash Deficiency Agreement:
- Examples An agreement to invest cash in a project to the extent required to cover any cash deficiency the project may experience convergence meaning.
- Definition Counterparty Risk:
- Examples The risk that the other party to an agreement will default. In an options contract, the risk to the option buyer that the option writer will not buy or sell the underlying as agreed convergence abbreviation.
