Eurodollars are dollar-denominated deposits held in U.S. banks by Europeans. deposits held by U.S. banks in foreign countries. deposits held by U.S. banks in Europe. dollar-denominated deposits held in banks outside the United States. An example of a strategy used by hedge funds is a "convergence bet," where the hedge fund manager searches for related securities that historically move in lockstep but have temporarily diverted. related securities that move in lockstep, hoping they will divert in the near future. markets where indexes are moving in random fashions. two firms that are about to merge, or "converge