By the end of the week, commodity traders traditionally 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 cryptocurrency exchanges, traders can now hedge their bets over the weekend, potentially capturing profits if the market becomes chaotic. This development is quietly influencing the oil market, with the implied volatility of short-dated West Texas Intermediate crude options beginning to change. While institutional traders are still cautious about embracing perpetual futures, the ability to trade 24/7 is creating new opportunities for traders and challenging traditional notions of the 'weekend effect.' As the financial infrastructure underlying these markets continues to evolve, it may eventually support the widespread adoption of continuous trading, potentially reshaping the traditional market and rendering the concept of a 'weekend' obsolete.
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