Quad Witching Day is the Friday in the third week of each quarter (March, June, September and December), at which time all financial derivatives in the US stock market will expire and be settled and delivered.
On the Quadruple witching day, stock index futures, stock index options, individual stock futures and individual stock options expire simultaneously. The last trading hour of the day is the Quadruple Witching Hour, which is between 3 and 4 p.m. new york time. During the maturity period, the trading volume increased sharply and the market volatility increased.
During the last trading session of the “Quadruple witching day“, investors were eager to close their positions, which led to a significant increase in trading volume. Therefore, the “Quadruple witching day” are usually accompanied by large fluctuations in the prices of stocks and derivatives.
Usually, on the same day, Malaysian stocks also fluctuate, especially when the market resumes at 4: 50 p.m., there may be huge trading volume for blue chips or large stocks. You shouldn’t be surprised if you see a sudden rise or fall.
