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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Convergence  

Definition 1.

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.
 

Definition 2.

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.
 

Definition 3.

The coming together of futures prices and cash market prices on the final trading day of a futures contract, as the basis approaches zero.
 
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