Triple Expiration Date

Four times a year, the contract periods for three types of derivatives—DAX futures, DAX options, and stock options on individual stocks—all expire simultaneously on the Eurex futures exchange. On this day, trading volume and price volatility increase noticeably—especially during the midday auction on Xetra, where the benchmark settlement price for DAX derivatives is determined. Those who understand how this mechanism works can properly interpret market movements on this day.

What is the triple expiration date?

The triple expiration date—also known in market jargon as “Witches’ Sabbath” or “Triple Witching Day”—refers to the day on which futures contracts expire on major futures markets worldwide. These are securities whose underlying assets can only be delivered in the future, unlike stocks, bonds, etc., in the spot market, which must be settled within two days.

For the German stock market, three types of contracts traded on the Eurex futures exchange are relevant:

• the DAX future, which market participants use to bet on the future performance of the leading German index or to hedge against its movements,
• DAX options, which grant the right (but not the obligation) to buy or sell the index at a fixed price,
• and stock options on individual stocks included in the DAX or other indices.

This date falls on the third Friday of March, June, September, and December and marks the end of a quarter.