So
We figured we would change things up a bit and do some definitions to help us all out.
Convergence
Normally, the contract price of a futures contract is higher than the current price of the underlying asset (normally a commodity). The futures contract price is higher because of the effect of the time value of money. As the expiration date nears, the spread between the spot price and the futures contracts price becomes smaller and smaller. On the delivery date of the contract, the futures and spot prices should be equal.
This process of futures and spot prices approaching one another is called convergence.
Read more: http://www.babypips.com/forexpedia/Convergence?utm_medium=email&utm_campaign=Daily+Newsletter+-+March+27+2013&utm_content=Daily+Newsletter+-+March+27+2013+CID_82c1cc336e51a7ea23f64493124b12e0&utm_source=Campaign%20Monitor&utm_term=What%20it%20means#ixzz2Oo9323AO
You can really garner a ton of information from the site above. It never hurts
one to try and learn all he or she can on a subject they are trying to create wealth from.
We know it is a little tough and not right in our wheel house but we believe one can still learn and apply what we know to the binary market
Have a great trading day....
doobiedoright
We figured we would change things up a bit and do some definitions to help us all out.
Convergence
Normally, the contract price of a futures contract is higher than the current price of the underlying asset (normally a commodity). The futures contract price is higher because of the effect of the time value of money. As the expiration date nears, the spread between the spot price and the futures contracts price becomes smaller and smaller. On the delivery date of the contract, the futures and spot prices should be equal.
This process of futures and spot prices approaching one another is called convergence.
Read more: http://www.babypips.com/forexpedia/Convergence?utm_medium=email&utm_campaign=Daily+Newsletter+-+March+27+2013&utm_content=Daily+Newsletter+-+March+27+2013+CID_82c1cc336e51a7ea23f64493124b12e0&utm_source=Campaign%20Monitor&utm_term=What%20it%20means#ixzz2Oo9323AO
You can really garner a ton of information from the site above. It never hurts
one to try and learn all he or she can on a subject they are trying to create wealth from.
We know it is a little tough and not right in our wheel house but we believe one can still learn and apply what we know to the binary market
Have a great trading day....
doobiedoright
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