Traditionally, Wall Street traders have spent their weekends waiting for markets to reopen, unable to adjust their positions or respond to unexpected events. However, with the advent of 24/7 crypto markets, this dynamic is changing. Traders can now use perpetual futures contracts, known as 'perps,' to hedge their bets and trade around the clock, even on weekends. This shift has significant implications for the oil market, where traders can now capture profits over the weekend if the market becomes chaotic.
While institutional traders have been slow to adopt perps due to liquidity concerns and infrastructure limitations, the rise of 24/7 trading is likely to continue, with potential long-term effects on traditional markets.