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Futures · Futures specialist topics · lesson 5 of 9 · 6 min read · David Alexander

Convergence, and expiry mechanics in full

the final settlement

Convergence completed by procedure: cash-settled contracts end at a computed final value - often a special opening or closing auction of the underlying - and the calculation window concentrates obligated flow into scheduled minutes; the quarterly coincidence of several families' expiries makes the effect seasonal and famous. Physical endings keep the commodities machinery. The one price move made on schedule, and the mechanics of its last day.

This lesson is part of the advanced modules.

Modules 6 to 8 are included with a paid account. The definitional summary above is the whole of this page until then.