Investor Glossary-triple witchingInvestor Glossary-triple witchingInvestor Glossary-triple witchingInvestor Glossary-triple witchingInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Triple Witching

The HTML to link to this page
 

Triple Witching is a market phenomenon that occurs when contracts for futures, stock options, and index options all expire on the same day. Triple witching typically occurs during the last trading hour on the third Friday of March, June, September, and December of every year (i.e. triple witching hour). During the triple witching hour, the markets generally exhibit unusual volatility as traders scramble to close or adjust their positions. Some short term traders attempt to profit from the unusual volatility exhibited during triple witching. Some traders may also apply historical performance measures as an attempt to gauge the direction of the market during the triple witching week (TWW). Since triple witching is a short term phenomena, it has little effect if any on the objectives of the long term investor. Variations of triple witching include double witching and quadruple witching. Triple witching is inspired from the "witching hour" term used in old tales to describe the period during which witches supposedly become increasingly active.



Rate this Triple Witching definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, quality assurance, 144a, VIX, limit order, inflation, labor relations, reverse mortgage, in escrow, diluted share, ex-dividend, wholly-owned subsidiary, APR, deferred tax, FTSE, 1031 exchange, ex-dividend date, per diem, open position, debt service coverage, retained earnings, margin rate, Zero Cost Collar, balance sheet, liquidity ratio, implied volatility, required rate of return, irrevocable trust, 401a, dividends payable, option premium, stock split, real GDP, Key Rate Duration, phantom income, FICO score, annual return, stock market close, 1035 exchange, cancelled check, command economy, EBITDA, deferred revenue, covered put, class C shares, current ratio, LIBOR, risk management, minority interest


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use