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.
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