How to hedge Litecoin

LTC is Litecoin token.

As LTC is a volatile asset, in certain instances it will require hedging.

The best method of hedging LTC is to use crypto derivatives.
There are multiple of the exchanges serving futures and perpetual swaps.

Choose from the list of hedging options

Litecoin Futures

When required to hedge the position for the mid-term period (weeks to months) you can use futures.

Exchange Symbol Premium (-)
Discount (+)		 Spread Open Intrest 24h Volume Expiry Date
BTCC Futures LTC-QUARTERLY 0.000 0.46 0 62,214,339 31/3/2023
OKX (Futures) LTC-USDT-230630 -1.247 0.01 2,372,278 4,358,032 30/6/2023
OKX (Futures) LTC-USDT-230331 -0.160 0.09 1,798,674 3,879,247 31/3/2023
OKX (Futures) LTC-USDT-230929 -2.402 0.04 530,472 3,724,750 29/9/2023
OKX (Futures) LTC-USD-230630 -1.435 0.01 9,672,460 3,613,753 30/6/2023
OKX (Futures) LTC-USDT-230407 -0.214 0.07 114,926 3,603,670 7/4/2023
OKX (Futures) LTC-USD-230929 -2.536 0.05 1,759,610 2,573,111 29/9/2023
Binance (Futures) LTCUSD_230331 -0.175 0.04 5,194,080 2,101,483 31/3/2023
Binance (Futures) LTCUSD_230630 -1.094 0.02 4,681,460 1,866,641 30/6/2023
OKX (Futures) LTC-USD-230331 -0.064 0.02 1,706,470 1,265,006 31/3/2023
OKX (Futures) LTC-USD-230407 -0.150 0.05 75,510 797,072 7/4/2023

Litecoin Perpetual Swaps

Short position for indefinite time is also possible by using perpetual.
Moreover you can earn swaps in particular cases.

Exchange Symbol Premium (-)
Discount (+)		 Spread Funding Rate Open Intrest 24h Volume
Binance (Futures) LTCUSDT 0.006 0.01 0.00388 137,302,090 484,850,572
MXC (Futures) LTC_USDT -0.010 0.02 0.01500 103,968,399 8,772,588
Bybit (Futures) LTCUSDT 0.032 0.01 0.01000 49,751,866 88,228,597
Gate.io (Futures) LTC_USDT 0.054 0.11 0.00460 47,455,805 31,837,724
BingX (Futures) LTC-USDT 0.011 0.01 -0.01010 31,732,748 34,812,692
Binance (Futures) LTCUSD_PERP 0.017 0.01 0.00444 25,941,540 96,758,491
Prime XBT LTC/BTC 0.000 2.94 0.00000 21,946,600 134,027
Prime XBT LTC/USD 0.000 1.05 0.00000 17,493,400 552,190
Bybit LTCUSDT 0.087 0.02 0.01000 17,312,285 41,947,326
OKEx (Futures) LTC-USDT-SWAP -0.072 0.02 -0.00181 17,229,398 118,792,364
OKEx (Futures) LTC-USD-SWAP -0.034 0.02 0.00203 15,401,410 39,838,045
Bitmart Futures 14 0.052 0.05 -0.03000 15,134,693 542,896,679
FTX (Derivatives) LTC-PERP -0.355 0.18 0.32880 13,042,410 78,164,932
Phemex (Futures) LTCUSD 0.090 0.01 0.01000 10,939,615 88,195,241
AAX Futures LTCUSDTFP 0.245 0.50 0.00490 8,205,636 11,651,648
Bitget Futures LTCUSD -0.009 0.08 0.02329 4,712,650 7,593,332
BitZ (Futures) 105 0.140 0.52 0.00000 4,184,590 65,062,122
ZBG Futures LTC_USDT 0.050 0.01 -0.03625 4,118,855 1,121,231
BTSE (Futures) LTCPFC 0.220 0.17 0.00000 3,713,300 986,494
dYdX Perpetual LTC-USD 0.136 0.11 -0.00366 2,923,071 7,559,323
BitMEX LTCUSD -0.035 0.04 0.01000 2,858,461 2,695,641
BitZ (Futures) 5 0.070 0.13 0.00000 2,678,366 39,329,309
Hopex LTCUSDT -1.927 0.00 0.00000 2,356,597 8,133,220
MEXC Global (Futures) LTC_USDT 0.075 0.01 0.00890 2,300,521 28,381,558
Bitfinex (Futures) TLTCF0:USTF0 0.170 0.11 0.02586 2,114,548 5,604,782
Huobi Futures LTC-USDT 0.047 0.01 0.01000 2,014,369 8,555,906
Bitrue (Futures) LTC-USDT 0.064 0.05 0.00398 1,927,240 48,986,804
Bitforex (Futures) SWAP-USD-LTC 0.018 0.05 0.01874 1,885,038 232,825,008
Phemex LTCUSD -0.245 0.12 0.09350 1,656,001 17,816,838
Bitfinex (Futures) LTCF0:USTF0 0.057 0.03 0.00000 1,612,953 1,225,964
Bitmart Futures LTCUSDT 0.037 0.03 -0.04000 1,213,875 479,308,035
MyCoinStory LTCUSDT_QUANTO_PERP -0.168 0.00 0.06409 1,097,992 3,523,127
Bitget Futures CMT_LTCUSDT -0.020 0.07 -0.00340 852,058 3,654,032
Huobi Futures LTC-USD -0.048 0.03 0.02555 839,280 1,915,169
WhiteBIT Futures LTC_PERP -0.064 0.21 0.01000 662,318 91,193
Kraken (Futures) PI_LTCUSD 0.000 0.09 -0.07593 658,081 644,607
HitBTC (Derivatives) LTCUSDT_PERP 0.113 0.07 -0.01675 595,896 7,234,150
CoinEx (Futures) LTC-USDT 0.000 0.06 -0.02864 526,475 1,921,411
MCS LTCUSDT_QUANTO_PERP 0.250 0.22 0.01000 232,211 8,530
WOO Network (Futures) PERP_LTC_USDT -0.013 0.04 0.00072 184,480 2,008,262
AscendEX (BitMax) (Futures) LTC-PERP -0.037 0.00 -0.01228 164,980 285,408
Poloniex Futures LTCUSDTPERP 0.054 0.16 0.01000 93,450 177,918
Crypto.com Exchange (Futures) LTCUSD-PERP 0.070 0.12 -0.00045 83,873 261,155
Binance (Futures) LTCBUSD 0.025 0.01 0.00252 51,351 20,141,497
BitZ (Futures) LTC_USDT 0.000 0.14 0.00000 47,194 263,085
WOO X (Futures) PERP_LTC_USDT 0.021 0.04 0.00016 42,182 806,628
Gate.io (Futures) LTC_USD 4.475 41.98 0.01000 34,595 2,000
BitZ (Futures) LTC_USD 0.000 0.12 0.00000 30,560 178,650
BaseFEX LTCXBT -0.504 0.21 0.01000 15,392 159,341
Deribit LTC_USDC-PERPETUAL -0.085 2.09 0.89056 7,170 11,228
Bit.com (Futures) LTC-USDT-PERPETUAL 0.011 0.42 0.00000 575 33
Deepcoin (Derivatives) LTCUSDT -0.027 0.06 -0.02285 0 404,543,812
BTCEX (Futures) LTC-USDT-PERPETUAL 0.021 0.04 0.00360 0 227,231,712
BTCC Futures LTCUSDT 0.032 0.35 0.00000 0 179,336,301
CoinTiger (Futures) LTCUSDT 0.048 0.02 0.00376 0 144,583,579
Biki (Futures) 10 -0.061 0.15 0.11109 0 47,130,982
BIT (Futures) USD-M:LTC-USD-PERPETUAL 0.063 0.07 0.01000 0 14,747,486
Fairdesk Derivatives LTC-USDT-PERP 0.086 -1.31 -0.06950 0 11,862,101
XT.COM (Derivatives) LTC_USDT -0.054 0.00 0.00860 0 8,205,118
XT.COM (Derivatives) LTC_USD 0.118 0.00 -0.06640 0 6,797,211
CoinTR Pro (Derivatives) LTCUSDT 0.000 0.00 0.01000 0 5,507,859
ZB (Derivatives) LTC_USDT 1.022 0.08 0.01000 0 4,969,201
Bybit (Futures) LTCUSD 0.043 0.01 0.01000 0 4,042,782
Deepcoin (Derivatives) LTCUSD 0.014 0.04 0.01632 0 2,170,518
MXC (Futures) LTC_USD -0.120 0.50 0.10000 0 2,167,008
Bybit LTCUSD -0.122 0.03 0.01970 0 1,924,452
Stormgain Futures LTC-PERPUSDT 0.000 0.04 0.00400 0 1,294,220
HBTC (Futures) LTC-SWAP-USDT 0.224 0.10 0.01470 0 1,252,724
Delta Exchange LTCUSDT -0.297 0.02 0.14590 0 985,727
GMO Japan (Futures) LTC_JPY 0.000 0.39 0.00000 0 644,998
HBTC (Futures) LTC-SWAP 0.192 0.05 0.00891 0 251,917
MEXC Global (Futures) LTC_MUSDT -0.335 94.73 0.00000 0 186,276
Bibox (Futures) 4LTC_USDT 0.000 0.02 0.00000 0 136,856
BHEX (Futures) LTC-SWAP-USDT -0.011 0.14 -0.02237 0 53,432
Crypto.com (Futures) LTCUSD-PERP 0.000 0.11 0.00000 0 35,751
Bitfinex (Futures) LTCF0:BTCF0 0.020 0.06 0.00000 0 22,718
CoinFLEX (Futures) LTC-USD-SWAP-LIN 0.769 0.63 0.00000 0 3,120
Stormgain Futures LTC-PERPBTC 0.000 2.37 0.00400 0 463
BHEX (Futures) LTC-SWAP 0.047 0.03 0.02221 0 40
Drift Protocol LTC-PERP 0.000 0.00 0.01709 0 0

Future Contracts on Indexes with Litecoin embeded

Another way of hedging positions for the mid-term is using future contracts on indexes with the asset price as a component of the the index.

Unfortunatelly, no future contract on index consisting of LTC exists.

Perpetual Swaps on Indexes with Litecoin component

Sometime the best option to hedge Litecoin is to short with perpetual contract idefinitely.
Earning swaps can be in some cases crucial for the positioning.

Exchange Symbol Premium (-)
Discount (+)		 Spread Funding Rate Open Intrest 24h Volume
FTX (Derivatives) ALT-PERP -9.888 0.60 10.36560 5,825,356 8,460,075
MEXC Global (Futures) ALT_USDT -0.417 0.42 0.10000 88,363 1,997,970
Gate.io (Futures) ALT_USDT -0.060 18.68 0.01000 7 2,265
BTSE (Futures) BBAXPFC -0.277 0.41 0.00000 0 186,125
BTSE (Futures) BBCXPFC -1.309 0.59 0.00000 0 30,866

Other crypto related Indexes (Perpetual Swaps)

There are several specyfic cryptocurrencies market Indexes which can be considered as a hedge for the trading positions. As Bitcoin take the lion's share of the whole market capitalisation, BTC dominance is one of the most notable.
Even more than on other markets, Bitcoin volatility influences almost all the trading pairs traded with both BTC and altcoins at the same moment.

Exchange Symbol Premium (-)
Discount (+)		 Spread Funding Rate Open Intrest 24h Volume
BingX (Futures) BTCDOM-USDT -0.010 0.01 -0.01020 1,288,724 1,856,212
Bitfinex (Futures) BTCDOMF0:USTF0 0.020 0.04 0.00000 305,005 756
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT 0.123 0.02 0.01000 11,161 6,673,503
BTSE (Futures) BDIPFC -0.143 0.30 0.00000 2,482 41,193
BTSE (Futures) BTCDOMPFC 0.252 0.16 0.00000 0 121,499

Negative correlation with Litecoin

Check correlations with Litecoin or use a custom form to check LTC changes in correlation coefficient with other token.

Stable coins or non-crypto assets can also be considered for hedging positions.