# Convergence

- Canonical URL: https://www.gerhardmerk.de/convergence
- Post ID: 590703
- Modified: 2023-07-25T21:00:02+00:00
- Language: en

## Definition

In stock exchange parlance, this means that the spot price and forward prices converge more or less steadily until the last trading day of a forward contract (the narrowing of futures prices to cash prices as the delivery date approaches. At the start, the contract price is higher because of the time value. But as the contract nears expiration, the futures price and the cash price come together). - In the language of the European authorities, the convergence of the economic policies of the participating countries; defined in the EU Treaty by approximately precisely described characteristics (convergence criteria). - See deficit ratio, debt ratio, Stability and Growth Pact. - Cf. ECB Monthly Bulletin of November 2002, p. 7 f., ECB Monthly Bulletin of May 2009, p. 99 ff. (detailed account of convergence in the euro area; many overviews), ECB Annual Report 2012, p. 154 (ECB Convergence Reports), ECB Monthly Bulletin of May 2012, p. 91 ff. (economic policy coordination and convergence; basic facts; references). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1