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 Comfort Letter:
- Examples independent auditor in securities underwriting agreements to assure that information in the registration statement and prospectus is correctly prepared to the best of the auditor's knowledge convergence definition.
- Definition Canadian Dealing Network (CDN):
- Examples The organized OTC market of Canada. Formerly known as the Canadian Over-the-Counter Automated Trading System (COATS), the CDN became a subsidiary of the Toronto Stock Exchange in 1991 convergence explain.
- Definition Clear Title:
- Examples Title to ownership that is untainted by any claims on the property or disputed interests, and therefore available for sale. This is usually checked through a title search by a title company convergence what is.
- Definition Calendar Spread:
- Examples Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date convergence meaning.
- Definition Calendar Effect:
- Examples tendency of stocks to perform differently at different times, including preformance anomalies like the January effect, month-of-the-year effect, day-of-the-week effect, and holiday effect convergence abbreviation.
