The reason is that it might distort the market information for particular instruments and result in increased volatility. Investors should know this at a minimum to understand the reasons for increased trading at those times and plan accordingly. As with any other witching day, there was hectic activity in the preceding week. According to a Reuters report, trading volume on U.S. market exchanges on that day was «10.8 billion shares, compared to the 7.5 billion average… over the last 20 trading days.»
Quad Witching—A Closer Look at a Mysterious Stock Market Event
- Quadruple witching refers to the simultaneous expiration of four popular investment contracts, creating wild market conditions.
- Market makers are fundamental in providing liquidity, especially during Quad Witching.
- He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses.
- Marking the calendar for Quadruple Witching Dates is essential for those involved…