A term referring to cash and futures prices tending to come together ( i.e., the basis approaches zero) as the futures contract nears expiration. Chicago Board of Trade glossary
The coming together of futures prices and cash market prices on the last trading day of a futures contract. The CENTER ONLINE Futures Glossary
Describes an inevitable change in the relationship between cash and futures prices for instruments until delivery. Prior to delivery, the futures price and the cash price differ by the cost of carry. As time passes, the cost of carry diminishes and the futures price will equal the cash price at the time of delivery. This is a necessary condition for the futures contract to effectively hedge the cash instrument. American Banker Glossary
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. Bloomberg Financial Dictionary
The process by which future prices and cash prices move together as delivery approaches. Convergence occurs on the final day of trading of the future, when there is no longer any cost of carry included in its price. At this point the futures price equals the cash price. Dresdner Kleinwort Wasserstein financial glossary
The movement of the cash asset price toward the futures price as the expiration date of the futures contract approaches. LIFFE

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converge con‧verge [kənˈvɜːdʒ ǁ -ˈvɜːrdʒ] verb [intransitive]
1. if two or more rates of interest, unemployment etc converge, they move to the same level:
converge with

• Irish productivity per worker has converged with the EU norms.

2. ECONOMICS if two or more economies converge, they start to have the same characteristics such as the same levels of inflation, interest rates etc. The economies of countries wanting to join the EU have to converge with those of existing members before they can join:
converge with

• Britain's economy has not yet converged sufficiently with those of the present participants in the euromarket.

— compare diverge
— convergent adjective :

• The Asian crisis showed the convergent, rather than divergent, nature of emerging economies.

— convergence noun [uncountable] :

• employment policies that work against regional convergence

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   The process by which a futures price moves toward the price of the underlying instrument as expiry approaches. Also, the movement of interest rates in applicant countries towards those prevailing in the currency bloc which they are aspiring to join. This is a new factor in the market trading of the countries that want to join the Eurozone.
   ► See also Basis Risk, Futures.

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converge UK US /kənˈvɜːdʒ/ verb
[I] ECONOMICS if two or more economies converge, they become more similar to each other: converge with sth »

The European economies have not yet converged with each other enough to make the euro a lasting success.

[I or T] ECONOMICS if prices, levels, or rates converge or are converged, they become or are made more similar to each other: »

Price/earnings ratios of different industrial sectors have dramatically converged in recent years.


Increasing flexibility in transportation will have the effect of converging gas prices around the world.

[I or T] COMMERCE if two different types of product, industry, etc. converge or are converged, they join together or are joined together: »

Fixed and mobile phone services are increasingly converging.


The new system allows customers to converge high-speed internet content with satellite TV.

convergence noun [U]

the convergence of digital and broadcast media

Financial and business terms. 2012.

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Look at other dictionaries:

  • convergence — [ kɔ̃vɛrʒɑ̃s ] n. f. • 1671; de convergent 1 ♦ Le fait de converger. La convergence de deux lignes. Convergence d un système optique, d une lentille. Rapport de convergence. ⇒ grandissement. Météor. Convergence de deux masses d air. Géol. Zone de …   Encyclopédie Universelle

  • Convergence — Con*ver gence, Convergency Con*ver gen*cy, n. [Cf. F. convergence.] 1. The condition or quality of converging; tendency to one point; the occurrence of two or more things coming together. [1913 Webster] 2. (Math.) the approach of an infinite… …   The Collaborative International Dictionary of English

  • Convergence — Allgemeine Informationen Genre(s) Rock, Metal, Alternative Metal, Nu Metal Gründung 2001 Website …   Deutsch Wikipedia

  • convergence — CONVERGENCE. substant, fémin. Terme de Géométrie. Position réciproque de deux lignes qui vont en s approchant.Convergence. En Dioptrique, c est la disposition des rayons d un corps lumineux, qui vont en s approchant, jusqu à ce qu ils se… …   Dictionnaire de l'Académie Française 1798

  • convergence — convergence. См. конвергенция. (Источник: «Англо русский толковый словарь генетических терминов». Арефьев В.А., Лисовенко Л.А., Москва: Изд во ВНИРО, 1995 г.) …   Молекулярная биология и генетика. Толковый словарь.

  • convergence — index adjoiner, caucus, center (central position), centralization, coalescence, coalition, collection (accumulation) …   Law dictionary

  • convergence — thesis …   Dictionary of sociology

  • convergence — (n.) 1713, from CONVERGE (Cf. converge) + ENCE (Cf. ence). Related: Convergent. Convergent evolution was in use among biologists by 1890 …   Etymology dictionary

  • convergence — n. pl. convergencies [kən vʉr′jəns] n. [< CONVERGENT] 1. the act, fact, or condition of converging 2. the point at which things converge 3. Biol. the development of similarities in unrelated organisms living in similar environments: Also… …   English World dictionary

  • Convergence — Contents 1 Science 1.1 Mathematics 1.2 Natural sciences …   Wikipedia

  • Convergence — Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom. Sur les autres projets Wikimedia : « Convergence », sur le Wiktionnaire (dictionnaire universel) Le terme de convergence est utilisé dans… …   Wikipédia en Français

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