What is a four -time witch?

Witch four times is an event that occurs from time to time on the stock market. Four important types of contracts will expire at the same time. The witch usually takes place four times every calendar year, with one episode of the phenomenon to take place during the last month of each quarter of the year.

There are four different contracts that expire when a four -time witch occurs. First, contracts for the futures index of shares will achieve their expiry date. Together with futures, contracts on the capabilities of the shares index will also expire. This type of event includes shares contracts, as well as the expiry of futures per stock. This phenomenon occurs on the third Friday of each month, which refers to the end of the accounting quarter, which means that four times witchcraft will take place on the third Friday of each of March, June, September and December. In this data, an hour is closed on the stock market as a witch hour.

phenomenon of quadruple linesOdešnice is a relatively new innovation on the market. Days ago, Futures for individual shares would be held on the third Friday of each month by a triple witch hour, which packed a quarter. There was also a phenomenon of double witches, which would usually include futures on the stock market index and the possibilities of the stock market index or options for stocks that were scheduled to expire.

In providing a name for this type of market event, the use of the witches is based on a folklore about a short time when those who practice witchcraft were considered particularly strong and active. Given that the expiration of these four types of contracts has a great impact on market performance, because the trading day ends, this term is generally considered to be suitable as suitable descriptive.

The approach of four times the witches sometimes affects concerns in the hearts of investors. This is because the degree of volatility associated with different participationThe securities tend to increase with the approaching date. Depending on the general state of the market, the result of this kind of market phenomenon may actually be positive for many investors. For this reason, the fear of the arrival of a four -time witch approach is not necessarily the best approach, although it is certainly necessary to project the impact that will have an event on the market and ensure investment activity accordingly.