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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use