primexbt overview<\/a> over positions before the end of the trading day. Double, triple, and quadruple witching can occur when two, three, or four asset class contracts expire simultaneously. These events, particularly triple witching, can be particularly volatile because of the concentration of expiring contracts.<\/p>\nFrom Your First Trade to Building a Trading Business<\/h2>\n
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Although the name sounds ominous, triple witching day has nothing to do with Halloween or scary stories. Triple witching is simply the term given to four unique trading days each year. Triple Witching can increase trading volume and volatility, potentially causing prices to fluctuate more than usual. If you\u2019re an investor or a trader, you have probably heard the term \u201cTriple Witching\u201d before. This term is used in the stock market to describe the expiration of three different financial instruments on the same day.<\/p>\n
How Does Triple Witching Impact the Stock Market?<\/h2>\n
The event chart below shows the average course of Apple in the ten trading days before and after the Triple Witching expiration days. Given the increased volatility during triple witching, strategies that benefit from large price movements are often favoured. Rolling out or rolling forward, meanwhile, is when a position in the expiring contract is closed and replaced with a contract expiring at a later date.<\/p>\n
Thus, volatility frequently spikes during this frenetic final trading hour across the derivatives markets and their underlying assets, as speculative plays and hedging activities spill over to equities to whip up the market further. The primary reason for the increased action on witching-hour days is that if the contracts are not closed before expiration, that could mean having to buy or sell the underlying security. For example, futures contracts that are not closed require the seller to deliver the specified quantity of the underlying security or commodity to the contract buyer. Options that are in the money, that is, profitable, may mean the underlying asset is exercised and assigned to the contract owner. In both cases, if the contract owner or contract writer can pay for security to be delivered, the contract must be closed out before expiration. Options traders also find out if their options expire in or out of the money.<\/p>\n","protected":false},"excerpt":{"rendered":"
The trading212 review decline into March undercut the breako […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[1],"tags":[],"yst_prominent_words":[],"class_list":["post-5449","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.seenda.cn\/wp-json\/wp\/v2\/posts\/5449","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.seenda.cn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.seenda.cn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.seenda.cn\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.seenda.cn\/wp-json\/wp\/v2\/comments?post=5449"}],"version-history":[{"count":1,"href":"https:\/\/www.seenda.cn\/wp-json\/wp\/v2\/posts\/5449\/revisions"}],"predecessor-version":[{"id":5450,"href":"https:\/\/www.seenda.cn\/wp-json\/wp\/v2\/posts\/5449\/revisions\/5450"}],"wp:attachment":[{"href":"https:\/\/www.seenda.cn\/wp-json\/wp\/v2\/media?parent=5449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.seenda.cn\/wp-json\/wp\/v2\/categories?post=5449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.seenda.cn\/wp-json\/wp\/v2\/tags?post=5449"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.seenda.cn\/wp-json\/wp\/v2\/yst_prominent_words?post=5449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}