Friday, September 17, 2010

Triple witching

Triple witching refers to the final hour of the trading session on the 3rd Fri of every Mar, Jun, Sep & Dec in US & European markets, which will see the expiration of stock index futures, stock index options & stock options. The simultaneous expirations generally increase the trading volume of options, futures & the underlying stocks as investors rush to close out their positions, which may lead to sharp volatility in the prices of related securities

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