Convergence - The movement of the cash asset price toward the futures price as the expiration date of the futures contract approaches.
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.
A movement in the price of a futures contract toward the price of the underlying cash commodity. At the start, the contract price is higher because of the time value.
The movement of a futures price towards that of the underlying instrument as the contract date approaches.
Convergence : the movement of the cash asset price toward the futures price as the expiration date of the futures contract approaches.
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.
a movement in the price of a futures contract toward the price of the underlying cash commodity. at the start, the contract price is higher because of the time value.
the movement of a futures price towards that of the underlying instrument as the contract date approaches.
Convergence