Traditionally, by Friday afternoon, commodity trading desks shift their focus from making profits to managing risk, as they cannot adjust their positions until markets reopen on Sunday evening. However, with the advent of perpetual futures contracts on crypto exchanges, traders can now hedge their exposure over the weekend, potentially creating new opportunities for profit.
The growth of 24/7 trading is still in its early stages, but it has already started to influence traditional markets, with some traders using perpetual futures as a tool to gauge market direction before the traditional market opens. While institutional traders are still cautious, the rise of crypto-native firms, proprietary trading shops, and savvy retail traders is driving the adoption of perpetual futures, which may eventually lead to a shift towards 24/7 trading in traditional markets.