Traditionally, commodity trading desks would wind down by Friday afternoon, as traders would assess their risk tolerance until markets reopened on Sunday evening. However, with the rise of crypto exchanges offering perpetual futures contracts, traders can now trade around the clock, even on weekends. This shift has significant implications for the oil market, where traders can now hedge their exposure over the weekend, potentially creating new opportunities for profit.
While institutional traders have been slow to adopt this new paradigm, crypto-native firms and retail traders are already taking advantage of these perpetual contracts. As the market continues to evolve, it's likely that traditional finance will need to adapt to a 24/7 trading environment, where the old 'weekend effect' is no longer relevant.