The traditional Wall Street routine is being disrupted by the rise of 24/7 crypto markets. By Friday afternoon, traders typically shift their focus from making money to managing risk, as they cannot adjust their positions until markets reopen on Sunday evening. However, with the advent of perpetual futures contracts, traders can now hedge their exposure over the weekend, potentially changing the dynamics of the market.
Researchers at Energy Aspects note that the growth of perpetual contracts on crypto exchanges is set to alter the way traders price short-dated West Texas Intermediate crude options, as they can now hedge their positions over the weekend. While institutional traders are still cautious about entering the market, the availability of perpetual contracts is creating new opportunities for traders to capture profits over the weekend.
The rise of 24/7 crypto markets is also influencing traditional markets, with perpetual futures contracts becoming an important source of information for traders before traditional markets reopen. As the market continues to evolve, it is likely that the traditional weekend routine of traders will change, with many preparing to trade around the clock.