By Friday afternoons, commodity trading desks traditionally shift their focus from making profits to managing risk, as they can't adjust their bets until markets reopen on Sunday evenings. However, with the emergence of around-the-clock crypto markets, traders can now react to news and events in real-time, even on weekends. This shift is being driven by the growth of 'perpetual futures,' a type of derivative contract that allows for continuous trading. As a result, traders are no longer limited by traditional market hours and can now hedge their positions and capture profits over the weekend.
While institutional traders have been slow to adopt this new paradigm, crypto-native firms, proprietary trading shops, and savvy retail traders are already taking advantage of the opportunities presented by perpetual futures. The impact of perps on traditional markets is still uncertain, but they are increasingly being seen as a valuable tool for price discovery and risk management. As the crypto industry continues to innovate and push the boundaries of what is possible, it may be that traditional finance is forced to adapt and evolve in response.