The commodity trading desks' mood shifts by Friday afternoon, as traders transition from focusing on profits to managing risk until markets reopen on Sunday. With the rise of perpetual futures contracts on crypto exchanges, traders can now hedge their positions over the weekend, potentially capturing profits in chaotic markets. This development is influencing the oil market, with the weekend effect on implied volatility beginning to narrow.
While institutional traders are cautious due to liquidity concerns and infrastructure limitations, crypto-native firms and retail traders are driving the growth of perps trading. The availability of perpetual futures is changing how traders behave, providing a tool to gauge market direction after the weekend and potentially reshaping traditional market practices.