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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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Triple Witching Day

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Glossary
Reading time: 1 minute(s)
The Triple Witching Day is also often referred to as the triple expiration date. Find out why this is an important for traders in this article.

Table of contents

  • The Triple Witching Day is also often referred to as the triple expiration date.
  • Triple Witching Day occurs four times a year, on the third Friday of March, June, September and December.
  • It marks the time when the expiration of stock index futures, stock index options and stock options occurs on the same day.
  • Triple Witching Day typically creates short-term bursts of extra volatility in the financial markets, as prices react to contracts expiry.
  • The volatility mostly affects index futures including the FTSE, DAX and Dow Jones.

Beware of market volatility when this happens

As Triple Witching is essentially the expiry of stock index futures, stock index options and stock options contracts all on the same day, traders know this and often look to trade in or out of these markets in order to affect the expiry (settlement price) or better their broader portfolio. Stock futures can often jump or fall between 0.5% to 1% (or more) within seconds, as these contracts expire or are about to expire. As such, traders expect heightened price volatility on Triple Witching Day.

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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