What is Convergence in Financial Markets?

Markets have fascinating ways of coming together, especially when we look at how different prices and financial sectors interact. Convergence happens in two main ways – one involves how futures and spot prices come together over time, and another describes how insurance companies and banks increasingly do each other’s jobs. Price Convergence in Derivatives Markets…

A Guide to Trading Time Periods in Financial Markets

Financial markets use contract months to organize when people can buy and sell specific investment products called derivatives. This timing system helps traders know when to enter and exit their market positions. What Makes Contract Months Important Trading derivatives requires picking specific periods, similar to choosing departure dates for airline tickets. Each derivative comes with…

What is a contract?

A contract happens when people or companies promise each other that the law will be enforced. These promises need both sides to give something of value. Many everyday activities involve contracts – buying a house, getting a job, or even purchasing coffee at a café. What Makes a Contract? Offer and Acceptance One person must…