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General TradingC
Convergence
Convergence in trading refers to the movement of the price of a futures contract toward the spot price of the underlying asset as the expiration date approaches. In technical analysis, convergence occurs when an indicator moves in the same direction as price, confirming the current trend.
Example
“As the Bitcoin quarterly futures contract neared expiration, its price converged with the spot price, narrowing the premium from 3% to nearly zero.”