Triple Witching: Hargreaves Lansdown Stockbrokers warns of the Triple Witching Effect on Share Prices

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Hargreaves Lansdown Stockbrokers is advising clients to think carefully before dealing between 10.10am and 10.30am on Friday 18 December.

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Hargreaves Lansdown Stockbrokers is advising clients to think carefully before dealing between 10.10am and 10.30am on Friday 18 December. Between these times, ‘Triple Witching’ in the market signals the quarterly occurrence whereby the contracts for stock index futures, index options and equity options all expire on the same day.

“Between these times, we are expecting high levels of trading activity coupled with unpredictable price movements. This is due to the market realigning options, futures and underlying ordinary share prices”, said Richard Hunter, Head of UK Equities at Hargreaves Lansdown Stockbrokers. “Our advice to clients is, if your order is not time critical, then consider holding off until later in the day when the market has stabilised. In addition, Friday’s event could prove particularly volatile given recent investor concerns regarding sovereign debt levels.”

If clients wish to trade on Friday morning, they should consider:

  •     Monitoring the spread and volatility of the stock in question
  •     Standing back entirely from the market for this period if the order is not time critical

For information about investing with Hargreaves Lansdown investors should call 0117 900 9000 or visit http://www.H-L.co.uk

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