"Outside of U.S. stock trading hours, Binance has gradually gained market pricing power. As an important leading indicator for judging market trends, I’ve also summarized how to interpret pre-market signals at the end of this post. Recently, there are two pieces of evidence: one is the Korean stock-related ETF, where the trading volume of the U.S. stock KORU is found to exceed that of the U.S. stock market. The other is the flash crash in storage over the weekend. After looking into the relevant news, it might be related to the release of DeepSeek 1017 version. However, Binance’s pricing power lies in its 24/7 availability, not in the accuracy of predictions. It provides a way to hedge overnight risks, turning what would have been a gap at market open into a continuous path, which in some cases offers significant advantages over traditional markets. 1. During non-trading hours for U.S. stocks, CME doesn’t have Korean stock-related futures. When both the U.S. and Korean stock markets are closed, the most liquid perpetual contracts in 24-hour trading gain pricing power during non-trading hours. 2. Shorting, leverage, and settlement. It’s easier to obtain hedging exposure through perpetual contracts—instant shorting, no currency exchange, higher leverage, lower margin requirements, and no T+1 settlement. These advantages improve liquidity. 3. Global users and fewer restrictions. Trading U.S. stocks attracts users from around the world, including players who don’t have U.S. stock accounts. They can trade Korean exposure with fewer restrictions. So, how do we interpret Binance’s pre-market trading data? Binance provides 24-hour risk exposure and better liquidity, but keep in mind that predictions are not absolutely accurate. Here’s my summary of how to look at pre-market signals: 1. Look at prices. Compare the closing price with the perpetual contract price to gauge the direction of market movement at the open. It’s sensitive to news outside trading hours, so you can check the direction first and then look for related news. 2. Look at funding rates. Whether the rate is positive or negative reflects market disagreements and dynamic market competition, indicating the direction of capital flows. 3. Look at trading volume. The higher the trading volume, the higher the credibility. It reflects the magnitude and urgency of risk exposure." #Binance #CryptoTrading #MarketSignals #PreMarket