Triple Witching Trading- the third Friday of the last month of each quarter of the natural maturity of stock market, at the same time contracts on indexes, on this Friday, it was the third Triple Witching of the year. London trade markets could become a little more unstable later this Friday after triple witching hit the market for this year.
This symbolizes the termination of options, index futures and options on index futures and generally directs to an outbreak of activities as traders with expiring contracts lock their positions.
Last September 2002, the FTSE 100 (UKX) swept 306 points in a subject of minutes after a trader at one of the big US houses strike the wrong knob and turned a $3 million trade into a $3 billion.
In the uncertainty that is going on, a record 1.2 billion shares – worth £4.6 billion – altered hands in twenty minutes and the computer systems of London Stock Exchange moved unsteadily, with a rocking motion on the edge of fall down.
On the other hand, the City watchdog now strictly monitoring the state of affairs with market violence fines imposed on those deliberating looking for to generate feral price movements. The US will then start observing its own triple witching soon after this afternoon.
Triple Witching
Comments