Opinion: The 7*24H Nasdaq contract prices are driven by leverage and liquidation mechanisms, not true price discovery.

Odaily Planet Daily reports that Markos Mom posted on the X platform stating that the 24/7 Nasdaq (Nasdaq) contract is not a true index. Its price is almost entirely driven by positions, leverage, funding rates, and liquidation mechanisms, rather than new information from underlying companies, options, or geopolitical events. When the actual market closes, there is no ETF arbitrage, options market, or cash stock flow. It is simply a price, a clearing engine, and traders’ predictions of the opening. He pointed out that this is no longer price discovery but rather a stress test. This is also why sudden 4% drops can occur during a calm weekend, only to be almost immediately recovered to the previous range. Such sudden volatility is not mean reversion but occurs because there is a public countdown until the reference market reopens, forcing the market to re-anchor. This distinction explains why the product sometimes experiences dramatic dislocations suddenly. Low volatility encourages leverage, leverage accumulates stop-losses, stop-losses push for liquidations, and liquidations cause significant temporary volatility. The weekend volatility range of this product is not limited by logic or fair value but by balance sheet and margin constraints. For most people, this is a coin-flip style gamble with future convergent events and highly uncertain pathways.