Listen to a Business English Dialogue about Witching hour
Roger: Hey Lucy, have you ever heard of the term “witching hour” in finance?
Lucy: Hi Roger! Yes, I have. It refers to the last hour of trading on the third Friday of March, June, September, and December.
Roger: That’s right. During the witching hour, there’s typically increased trading activity as investors close out or roll over futures and options contracts.
Lucy: So, does this increased activity during the witching hour often lead to higher volatility in the market?
Roger: Absolutely. With many traders closing or adjusting their positions, it can lead to heightened volatility and potentially larger price swings.
Lucy: And I suppose this volatility during the witching hour can present both opportunities and risks for investors?
Roger: Exactly. Some investors may see it as an opportunity to capitalize on short-term price movements, while others may prefer to exercise caution due to the increased uncertainty.
Lucy: So, staying informed about the witching hour and its potential impact on the market is essential for investors?
Roger: Definitely. Being aware of key events like the witching hour can help investors make more informed decisions and better navigate volatile periods in the market.
Lucy: Thanks for explaining, Roger. It’s interesting to learn about how specific times can influence market behavior.
Roger: You’re welcome, Lucy. If you have any more questions, feel free to ask!