## The Inherent Risks of Nasdaq 24/7: What Traders Need to Know
The synthetic perpetual contract that mimics Nasdaq 24/7 features characteristics that significantly differentiate it from a true trading index outside regular hours. Market professionals warn that price movements during periods of no official activity are predominantly shaped by leverage and liquidation events, disconnected from the actual market fundamentals.
The dynamics of these fluctuations reveal a particular scenario: without arbitrage from ETFs or options derivatives activity, weekend fluctuations effectively serve as simulations of extreme situations. The low volatility environment ends up enticing traders to increase their leveraged positions, creating ideal conditions for chain liquidations that can amplify losses.
Analysts emphasize that understanding the inherent risk profile of this product is essential. It is not merely a direct substitute for the traditional Nasdaq—the structure and behavior of the asset require a differentiated risk management approach and strategies tailored to its unique nature.
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## The Inherent Risks of Nasdaq 24/7: What Traders Need to Know
The synthetic perpetual contract that mimics Nasdaq 24/7 features characteristics that significantly differentiate it from a true trading index outside regular hours. Market professionals warn that price movements during periods of no official activity are predominantly shaped by leverage and liquidation events, disconnected from the actual market fundamentals.
The dynamics of these fluctuations reveal a particular scenario: without arbitrage from ETFs or options derivatives activity, weekend fluctuations effectively serve as simulations of extreme situations. The low volatility environment ends up enticing traders to increase their leveraged positions, creating ideal conditions for chain liquidations that can amplify losses.
Analysts emphasize that understanding the inherent risk profile of this product is essential. It is not merely a direct substitute for the traditional Nasdaq—the structure and behavior of the asset require a differentiated risk management approach and strategies tailored to its unique nature.