👹 Witching Friday: Traders, Brace Yourselves!

Today isn't just any Friday, it's "Witching Friday"!

What is it?

Four times a year, on the third Friday of March, June, September, and December, the stock market experiences a "magical" event.

On this day, futures contracts and options on stock indexes and stocks expire simultaneously.

This can lead to:

- Significant increase in trading volume.

- Unusual price behavior of underlying assets.

- Sharp price swings, especially in the last hour of trading, known as the "Triple Witching Hour".

Why does this happen?

Investors use futures and options to hedge their positions or speculate on market movements.

When these contracts expire, investors must either close their positions or execute them.

This can lead to a sudden surge in demand and supply for stocks (and more), which in turn can cause price volatility.

If you're trading on "Witching Friday," it's important to be cautious and understand the risks ☝️