Cryptocurrency Q&A What is witching hour in trading?

What is witching hour in trading?

OliviaTaylor OliviaTaylor Fri Oct 04 2024 | 5 answers 785
I'm curious, could you elaborate on the concept of "witching hour" in the world of trading? Is it a specific time of day when traders are particularly active or cautious? Does it have any significance in relation to market volatility or major market events? I'd love to gain a deeper understanding of this term and how it impacts trading decisions. What is witching hour in trading?

5 answers

Matteo Matteo Sun Oct 06 2024
For traders involved in these contracts, the witching hour represents a time of decision-making and risk management. They must carefully assess their positions and decide whether to hold on to their contracts or close them out before expiration.

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MichaelSmith MichaelSmith Sun Oct 06 2024
BTCC, a leading cryptocurrency exchange, offers a range of services that cater to the needs of traders in the digital asset space. Among its offerings are spot trading, futures trading, and wallet services. These services enable traders to access the cryptocurrency markets and manage their portfolios effectively.

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SamuraiWarriorSoul SamuraiWarriorSoul Sun Oct 06 2024
The Witching Hour is a crucial event in the financial markets, particularly in the context of derivatives trading. It occurs on the third Friday of every month, marking the expiration of options and futures contracts on stocks and stock indexes.

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Emanuele Emanuele Sun Oct 06 2024
During this hour, traders engage in a flurry of activity as they attempt to close out their positions before the contracts expire. This results in a significant increase in trading volumes, making the witching hour a pivotal moment for market participants.

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Federica Federica Sun Oct 06 2024
The expiration of options and futures contracts can have a significant impact on the underlying assets. As traders adjust their portfolios to reflect the expiration, they can drive price movements in the underlying stocks or indexes.

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