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-WEEKLY -0.123 0.44 7,654,349 10,169,470 1/7/2022
Huobi Futures LTC_CW 0.496 0.19 476,990 3,339,051 1/7/2022
OKX (Futures) LTC-USD-220701 0.409 0.07 3,016,370 2,518,824 1/7/2022
OKX (Futures) LTC-USD-221230 -0.222 0.10 2,066,060 1,972,978 30/12/2022
OKX (Futures) LTC-USDT-221230 -0.796 0.10 2,851,744 1,967,375 30/12/2022
OKX (Futures) LTC-USDT-220708 0.314 0.14 115,989 1,932,556 8/7/2022
OKX (Futures) LTC-USDT-220701 0.159 0.12 894,301 1,801,552 1/7/2022
Huobi Futures LTC_NQ -0.335 0.15 734,090 1,735,580 30/9/2022
FTX (Derivatives) LTC-0930 0.243 0.23 2,289,380 1,387,638 30/9/2022
OKX (Futures) LTC-USD-220708 0.378 0.10 1,523,770 1,345,655 8/7/2022
Binance (Futures) LTCUSD_220930 0.583 0.05 1,456,390 805,062 30/9/2022
Huobi Futures LTC_CQ 0.443 0.18 1,058,070 766,771 30/9/2022
Huobi Futures LTC_NW 0.692 0.31 465,030 665,639 1/7/2022
Huobi Futures LTC_NW 0.927 0.16 339,770 645,161 8/7/2022
Binance (Futures) LTCUSD_221230 -0.179 0.19 138,180 171,518 30/12/2022

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
MXC (Futures) LTC_USDT -0.010 0.02 0.01500 103,968,399 8,772,588
Binance (Futures) LTCUSDT -0.018 0.02 -0.00491 31,001,099 171,548,040
FTX (Derivatives) LTC-PERP 0.133 0.02 -0.10800 25,072,983 34,995,379
OKEx (Futures) LTC-USDT-SWAP -0.072 0.02 -0.00181 17,229,398 118,792,364
Bybit LTCUSDT 0.088 0.05 -0.00570 15,612,481 25,608,549
OKEx (Futures) LTC-USD-SWAP -0.034 0.02 0.00203 15,401,410 39,838,045
AAX Futures LTCUSDTFP 2.657 0.06 -0.02850 14,253,126 20,602,927
Prime XBT LTC/BTC 0.000 3.57 0.00000 8,802,100 5,537
Binance (Futures) LTCUSD_PERP 0.021 0.02 -0.00944 8,293,670 21,492,242
Prime XBT LTC/USD 0.000 1.72 0.00000 7,372,600 129,859
Bitforex (Futures) SWAP-USD-LTC 0.147 0.09 -0.08767 6,755,167 122,417,165
dYdX Perpetual LTC-USD 0.066 0.35 -0.00033 5,188,400 1,171,973
BTCC Futures LTCUSDT -0.123 0.44 0.00000 5,035,756 6,690,441
Bitget Futures LTCUSD -0.009 0.08 0.02329 4,712,650 7,593,332
ZBG Futures LTC_USDT 0.050 0.01 -0.03625 4,473,465 1,123,563
Gate.io (Futures) LTC_USDT -0.018 0.18 -0.00380 4,228,449 7,505,482
BitZ (Futures) 105 0.140 0.52 0.00000 4,184,590 65,062,122
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
Huobi Futures LTC-USD 0.136 0.05 0.01000 2,508,350 812,918
Bitfinex (Futures) TLTCF0:USTF0 0.170 0.11 0.02586 2,114,548 5,604,782
Kraken (Futures) PI_LTCUSD 0.124 0.14 -1.57165 1,819,887 853,815
Phemex (Futures) LTCUSD -0.336 0.07 0.01000 1,717,253 11,119,740
Bitfinex (Futures) LTCF0:USTF0 0.070 0.07 0.00000 1,702,449 4,513,635
Phemex LTCUSD -0.245 0.12 0.09350 1,656,001 17,816,838
Huobi Futures LTC-USDT 0.047 0.05 0.00752 1,497,006 2,794,048
BTSE (Futures) LTCPFC -0.285 2.19 0.00000 1,485,213 929,339
Bitrue (Futures) LTC-USDT 0.075 0.11 -0.01416 1,121,047 19,339,105
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
MEXC Global (Futures) LTC_USDT 0.074 0.04 -0.00990 833,745 27,849,207
Hopex LTCUSDT -0.159 0.00 0.00000 804,986 13,705,970
AscendEX (BitMax) (Futures) LTC-PERP 0.342 0.00 -0.02960 336,352 453,304
Crypto.com Exchange (Futures) LTCUSD-PERP 0.088 0.12 -0.00001 312,635 312,635
CoinEx (Futures) LTC-USDT -0.035 0.02 -0.04379 300,586 2,497,286
MCS LTCUSDT_QUANTO_PERP 0.250 0.22 0.01000 232,211 8,530
Gate.io (Futures) LTC_USD -2.431 9.18 0.01000 112,882 3,190
Poloniex Futures LTCUSDTPERP -0.035 0.21 0.00000 47,908 75,764
BitZ (Futures) LTC_USDT 0.000 0.14 0.00000 47,194 263,085
CoinFLEX (Futures) LTC-USD-SWAP-LIN 0.000 0.53 -0.00080 35,229 268
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
WOO Network (Futures) PERP_LTC_USDT 0.071 0.04 -0.00296 608 21,411
CoinTiger (Futures) LTCUSDT 0.102 0.02 -0.00470 0 51,286,088
Biki (Futures) 10 -0.061 0.15 0.11109 0 47,130,982
Bybit LTCUSD 0.000 0.02 0.01000 0 3,308,750
MXC (Futures) LTC_USD -0.120 0.50 0.10000 0 2,167,008
BTCEX (Futures) LTC-USDT-PERPETUAL -0.035 0.02 0.01000 0 1,446,139
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
Stormgain Futures LTC-PERPUSDT 0.000 0.10 0.00400 0 408,262
GMO Japan (Futures) LTC_JPY 0.000 0.24 0.00000 0 262,978
HBTC (Futures) LTC-SWAP 0.192 0.05 0.00891 0 251,917
Bitfinex (Futures) LTCF0:BTCF0 0.068 0.05 -0.02460 0 175,146
Bibox (Futures) 4LTC_USDT 0.000 0.02 0.00000 0 136,747
BHEX (Futures) LTC-SWAP-USDT -0.011 0.14 -0.02237 0 53,432
Deribit LTC_USDC-PERPETUAL -0.129 0.09 -0.00243 0 36,994
Crypto.com (Futures) LTCUSD-PERP 0.000 0.11 0.00000 0 35,751
BHEX (Futures) LTC-SWAP 0.047 0.03 0.02221 0 40
Stormgain Futures LTC-PERPBTC 0.000 2.56 0.00400 0 15
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.

Exchange Symbol Premium (-)
Discount (+)
Spread Open Intrest 24h Volume Expiry Date
FTX (Derivatives) ALT-0930 -0.005 0.17 695,881 17,036 30/9/2022

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 0.065 0.10 -0.09840 9,766,478 3,855,773
Gate.io (Futures) ALT_USDT -3.160 2.63 0.36770 31,361 1,049
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
Bitfinex (Futures) BTCDOMF0:USTF0 0.020 0.10 0.00000 169,935 11,106
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT -0.026 0.01 0.06240 9,752 9,387,599
BTSE (Futures) BDIPFC -0.143 0.30 0.00000 2,482 41,193

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.