Traditionally, by Friday afternoon, commodity trading desks shift their focus from making money to managing risk, as they cannot adjust their bets over the weekend. However, the rise of perpetual futures contracts in crypto markets has created a 24/7 venue for trading, allowing traders to hedge their positions and react to market-moving events over the weekend. This development has significant implications for the oil market, where traders can now use perpetual contracts to gauge market sentiment and adjust their positions accordingly.
While institutional traders have yet to fully embrace perpetual futures, the growth of crypto markets and the increasing availability of 24/7 trading options are likely to continue shaping the trading landscape. As the lines between traditional finance and crypto continue to blur, the concept of a 'weekend effect' may become a thing of the past, with markets potentially becoming 24/7 in the future.