Today is an important day for investors because of the US stocks.The 'Triple Witching Day', which occurs once every quarter, is here. The market is expected to experience greater volatility.!Many mooers may still not fully understand, so Sir Moo urgently provides everyone with a brief explanation.
1. First, what is 'Triple Witching Day'?Triple Witching Day, also known as Triple Witching Day, is a day when single stock options, equity index futures, and equity index options quarterly contracts all expire simultaneously in the last trading hour of the day, corresponding to 3 to 4 pm in New York time.
When does Triple Witching Day usually occur?Usually once per quarter, appearing on the third Friday of March, June, September, and December each year.
What is the difference between Triple Witching Day and Quadruple Witching Day?Actually, Triple Witching Day is what people used to call Quadruple Witching Day in the past. It was called so because there used to be single stock futures contracts in each quarter. Since the closure of OneChicago exchange in September 2020, trading of single stock futures ceased, leading to Triple Witching Day.
What kind of performance can be expected in the market on Triple Witching Day?On this day, everyone has their own calculations, with various operations like exercising rights, closing positions, rolling positions, hedging risks, etc. The trading volume will significantly increase in the short term, funds will flow rapidly, and the price fluctuations will be very intense.
5. Are there any special considerations for this 'Triple Witching Day'?What a coincidence! We ran into the S&P Dow Jones...