Their are 3 NIFTY future contracts open on every new expiry.
Future 1, future 2, future 3.
I know that difference in Nifty future 1 and spot converges on the date of expiry.
But what is the reason between convergence and divergence of difference between future 2- future 1, future 3- future 2 ?.
And How one can find out that this difference will converge or diverge in future?