By the end of the week, 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 rise of perpetual futures contracts on crypto exchanges, traders can now hedge their bets and react to market changes over the weekend. This shift has significant implications for the traditional oil market, where traders can now capture profits over the weekend if the market becomes chaotic.
While institutional traders have been slow to adopt perpetual futures, the growth of crypto exchanges and the increasing volume of perps trading suggest that this trend is likely to continue. As one trader noted, 'You have more touch points for picking up and laying off risk over the weekend than you had before.' The ability to hedge over the weekend is valuable for traders, and the emergence of perpetual futures contracts is likely to influence traditional markets. As CME's Duffy said, 'I think that markets will be 24/7 down the road.
All markets.'