Skip to main content

What Is the Quadruple Witching Hour?

Author:
Publish date:
Video Rating:
TV-G
Video Duration:
1

If you are new to trading, then you might bump into the term 'Quadruple Witching Hour.' So, what is it?

Quadruple Witching Hour is the last hour of the trading session on Quadruple Witching Day. Quadruple Witching Day occurs four times a year: the third Friday of March, June, September, December.

On this day, all four asset classes--which include stock index futures, stock index options, stock options, and single stock futures--expire simultaneously.

Investors take a closer look at this day as it might cause chaos in the financial market. Why? Because trading volume is high in the last hour as traders try to close out or roll over positions. 

The term ‘witching’ suggests something wicked could happen.

Watch the video above to know more.

Related Videos