As the week draws to a close, commodity trading desks undergo a significant shift in mindset. From Monday to Thursday, traders are focused on making profitable trades, but by Friday lunchtime, their attention turns to managing risk over the weekend.
With markets closed, traders are unable to adjust their positions or respond to unexpected events, leaving them vulnerable to potential losses. However, the rise of perpetual futures contracts on crypto exchanges has changed the game, allowing traders to hedge their bets and manage risk around the clock. This development has significant implications for traditional finance, particularly in the oil options market, where traders can now capture profits over the weekend rather than simply waiting for markets to reopen. While institutional traders have been slow to adopt perpetual futures, the growth of crypto-native firms, proprietary trading shops, and savvy retail traders is driving the market forward.
As the financial infrastructure evolves to support 24/7 trading, traditional finance may finally be forced to abandon its outdated weekend routine and embrace the possibilities of continuous trading.