$NEIRO $BNB $1MBABYDOGE #Binance #CZ What is Witching Friday and how does it affect the market?
Witching Friday (or Triple Witching) is a day when three types of derivatives expire simultaneously: stock futures, stock options, and index options.
This happens four times a year, on the third Friday of March, June, September, and December.
Market Impact:
🔵 Volatility: The market becomes choppy as investors close or roll over their positions.
🔵 Trading volume: Increases significantly due to the rush to execute contracts.
🔵 Price fluctuations: Sudden movements are possible.
Causes of Volatility:
🔵 Investors adjust their positions, creating supply and demand swings.
🔵 Massive closing of options and futures prompts trades that affect the overall market.
This day is crucial for active traders, as increased volatility can provide opportunities for profit but also carries increased risks.
#WitchingFrida