triple witching hour

triple witching hour definition - business

triple witching hour

The hour before the market closing when options and futures on stock indexes expire on the same day, thereby setting off frenzied trading in futures, options, and underlying securities. Traders and arbitrageurs unwind investment positions and produce large price movements in securities. The triple witching hour occurs on the third Fridays of March, June, September, and December. See also expiration Friday.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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