The traditional Friday afternoon mood on commodity trading desks is changing, as traders are no longer just waiting for the weekend to pass. With the emergence of perpetual futures on crypto exchanges, traders can now react to market movements 24/7, even on weekends. This shift has significant implications for the oil market, where traders can now hedge their bets over the weekend, potentially reducing the Friday selling pressure. While institutional traders are still cautious, the growth of perpetual futures trading on crypto exchanges is quietly influencing the traditional market.
As one trader noted, 'You have more touch points for picking up and laying off risk over the weekend than you had before.' The availability of perpetual contracts is also creating new opportunities for traders to capture profits over the weekend, rather than just sitting on their positions. However, the lack of meaningful liquidity and infrastructure are major reasons institutional traders are still staying away.
Despite these challenges, the rise of perpetual futures is changing the way traders behave, and may eventually reshape the traditional market. As CME's Terry Duffy said, 'I think that markets will be 24/7 down the road. All markets.'