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

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