What happens at 3:50 est?

[Aisone]

Every day at 3:50 est there is a burst of volatility in the index futures. What causes this?

 

[Real Money]

Closing auction is part of it. Some derivatives mark to the close as well.

 

[tiddlywinks]

Another part... at brokers/FCMs that cater to day-traders by offering reduced daytrade margins, positions must flatten, or the normal exchange margin requirement will be applied.

 

[Laissez Faire]

 

[SunTrader]

Same thing could be said for dozens of other one minute bars throughout the trading day.

So let's see what happened this past Thursday, then Friday and today at 3:50pm - notice also ATR set to 1 at bottom of each:-

Yaaawn.

 

[Aisone]

Closing auction is part of it. Some derivatives mark to the close as well.

View attachment 297666

Thanks. I figured it was something scheduled like this, because there is always atleast a quote flurry, but sometimes has or leads to a decent amount of volatility.

 

[Laissez Faire]

Thanks. I figured it was something scheduled like this, because there is always atleast a quote flurry, but sometimes has or leads to a decent amount of volatility.

Yes. It's not uncommon with a spike around 15:50. FWIW, I'm usually not in the market then, but if I'm in a profitable position I may hold it. Otherwise, it seems a bit chancy.

 

[maxinger]

Every day at 3:50 est there is a burst of volatility in the index futures. What causes this?

This is a repeat question / post.

As mentioned before, there was no burst at 3.50 EST (see hilited filled rectangle).
Notice that at 3.50 EST, the market was relatively calm.

I guess you will post a similar question again.

 

[Aisone]

This is a repeat question / post.

As mentioned before, there was no burst at 3.50 EST (see hilited filled rectangle).
Notice that at 3.50 EST, the market was relatively calm.

I guess you will post a similar question again.



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Do you walk with that stick or just sit on it while typing? I have not posted this before (that I know of lol.) And the question has already been answered.

 

[TheDawn]

There is always an incredible amount of volatility at around 3:50 PM and I always dismissed it as just part of the power hour. I didn't know there is actually so much that goes on during that period that directly contributes to that volatility.

Thanks to all. Learning a lot today.