May 17 2011

What is triple witching Friday? Triple witching hour?

Category: Finance


Triple WitchingTriple witching Friday is an event that occurs in finance. It takes place four times a year (March, June, September and December), on days when the contracts for stock index futures, stock index options, and stock options simultaneously expire. During the week proceeding and the day of, investors will often attempt to close out their positions prior to the contract expirations. This occurrence can sometimes make markets particularly active and unpredictable with increases in trading volume and some price volatility. Triple witching hour occurs on the same day in the last hour of market activity.

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