The, erm.. "magic"? hour?

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"Volatility increases the risk of holding positions overnight, so traders have a big incentive to go home with the exposures they or their quant model wanted." Traders are being "rational" by selling out their positions before the close each day, because they can't be sure which direction the volatility will take the market by the next open, up or down.

 

 

This is why we get huge volatility in the last hour of trading... sometimes 500 point swings seemingly in seconds.

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