16th September is the Quadruple Witching Day.
The 3rd Quadruple Witching Day falls on September 16.
The term “quadruple witching day” refers to the Friday of the third week of each quarter (March, June, September, and December), when all financial derivatives on the American stock market will expire and be settled.
Stock index futures, stock index options, individual stock futures, and individual stock options all expire simultaneously throughout the course of the four witch days. The Quadruple Witching Hour, which takes place between three and four p.m. New York time, is the final trading period of the day. The trade volume and market volatility both increased significantly throughout the expiry time.
During the final trading session of the “Quadruple Witching Day,” investors hurried to close off their holdings, which caused a significant surge in trade volume. Consequently, there are typically significant movements in the prices of stocks and derivatives during “Quadruple Witching days.”
On the Quadruple Witching Day, the FBM bourse is typically volatile, particularly when the market reopens at 4.50 pm. There may be a significant volume of trade in blue chips or different large caps. If there is a dramatic increase or decrease near the conclusion, don’t be frightened.
March 18, June 17, September 16, and December 16 are the dates for this year’s quadruple witching days. The market will be closed on September 16, which also happens to be Malaysia Day, the day of the third four-witch sunset of the year.
