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
OKEx (Futures) LTC-USD-210625 -4.531 0.05 55,150,700 624,260,886 25/6/2021
OKEx (Futures) LTC-USDT-210625 -4.595 0.19 0 593,020,144 25/6/2021
Huobi Futures LTC_CQ -4.723 0.08 62,833,490 205,481,733 25/6/2021
OKEx (Futures) LTC-USD-210423 -0.350 0.14 8,165,320 174,874,335 23/4/2021
OKEx (Futures) LTC-USD-210924 -9.899 0.08 17,724,920 108,167,875 24/9/2021
OKEx (Futures) LTC-USDT-210924 -9.040 0.14 0 90,018,803 24/9/2021
Binance (Futures) LTCUSD_210625 -4.871 0.08 25,940,500 68,797,246 25/6/2021
OKEx (Futures) LTC-USD-210430 -0.949 0.12 2,971,000 68,058,669 30/4/2021
OKEx (Futures) LTC-USDT-210423 -0.456 0.26 0 54,576,729 23/4/2021
Huobi Futures LTC_NQ -4.649 0.04 66,643,430 54,165,118 25/6/2021
OKEx (Futures) LTC-USDT-210430 -1.023 0.25 0 36,692,184 30/4/2021
Huobi Futures LTC_NQ -9.212 0.10 12,872,230 30,210,327 24/9/2021
Huobi Futures LTC_CW -0.494 0.08 6,792,220 27,726,132 23/4/2021
FTX (Derivatives) LTC-0625 -4.534 0.15 16,994,505 23,670,450 25/6/2021
Binance (Futures) LTCUSD_210924 -9.817 0.14 6,094,600 14,150,893 24/9/2021
Huobi Futures LTC_NW -1.319 0.08 12,899,100 11,361,520 23/4/2021
Huobi Futures LTC_NW -1.122 0.14 2,913,220 9,272,881 30/4/2021

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 -0.062 0.03 0.03936 158,335,474 1,387,212,735
FTX (Derivatives) LTC-PERP 0.695 0.02 0.07920 135,714,956 534,158,456
MXC (Futures) LTC_USDT -0.029 0.05 0.02340 119,786,601 57,801,438
Bitforex (Futures) SWAP-USD-LTC 0.073 0.02 0.04700 99,320,727 84,488,310
ZBG Futures LTC_USDT -0.113 0.02 0.01900 87,801,756 2,734,688
Binance (Futures) LTCUSD_PERP 0.028 0.01 0.01433 64,569,010 497,877,389
Huobi Futures LTC-USD 0.193 0.01 0.01000 56,873,060 351,639,513
Bybit LTCUSDT 0.141 0.01 0.01840 46,065,231 101,391,523
OKEx (Futures) LTC-USD-SWAP -0.245 0.01 -0.01632 34,601,610 165,520,254
Hopex LTCUSDT 0.015 0.00 0.00000 21,021,702 364,097,298
BitMEX LTCUSD -0.030 0.28 0.01000 18,169,799 28,539,884
Bitfinex (Futures) LTCF0:USTF0 -0.022 0.04 -0.05275 16,491,061 11,221,920
BitZ (Futures) LTC_USDT -0.038 0.19 0.00000 13,509,060 139,362,405
Bitget Futures CMT_LTCUSDT 0.015 0.03 0.06733 11,642,876 26,527,969
Phemex (Futures) LTCUSD -0.052 0.01 0.01981 11,010,154 4,647,186
Prime XBT LTC/USD 0.000 0.38 0.00000 5,858,052 9,824,747
Kraken (Futures) PI_LTCUSD 0.042 0.13 0.17172 5,034,871 10,175,187
Prime XBT LTC/BTC 0.000 2.08 0.00000 4,908,968 906,057
Bitget Futures LTCUSD -0.091 0.02 0.03493 4,832,250 6,715,535
BitZ (Futures) 105 0.140 0.52 0.00000 4,184,590 65,062,122
BitZ (Futures) 5 0.070 0.13 0.00000 2,678,366 39,329,309
Huobi Futures LTC-USDT 0.189 0.01 0.03774 2,473,793 627,183,403
BTSE (Futures) LTCPFC -0.007 0.42 0.00000 2,352,755 2,677,849
Bitfinex (Futures) TLTCF0:USTF0 0.170 0.11 0.02586 2,114,548 5,604,782
BitZ (Futures) LTC_USD -0.038 0.14 0.00000 1,669,867 16,961,949
Phemex LTCUSD -0.245 0.12 0.09350 1,656,001 17,816,838
Gate.io (Futures) LTC_USD -0.690 0.00 0.08040 434,265 974,492
BaseFEX LTCXBT -0.504 0.21 0.01000 15,392 159,341
OKEx (Futures) LTC-USDT-SWAP -0.040 0.05 0.02341 0 433,905,405
CoinTiger (Futures) LTCUSDT -0.130 0.01 0.03919 0 415,210,116
Biki (Futures) 10 -0.061 0.15 0.11109 0 47,130,982
Gate.io (Futures) LTC_USDT -0.034 0.00 0.02090 0 11,691,401
Stormgain Futures LTC-PERPUSDT 0.000 0.14 0.00400 0 10,675,431
MXC (Futures) LTC_USD -0.120 0.50 0.10000 0 2,167,008
HBTC (Futures) LTC-SWAP-USDT -0.210 0.17 0.09199 0 1,421,727
GMO Japan (Futures) LTC_JPY 0.000 0.83 0.00000 0 1,148,026
Delta Exchange LTCUSDT -0.297 0.02 0.14590 0 985,727
Bitfinex (Futures) LTCF0:BTCF0 0.055 0.16 0.00000 0 979,322
HBTC (Futures) LTC-SWAP -0.041 0.06 0.07183 0 631,155
MyCoinStory LTCUSDT_QUANTO_PERP -0.156 0.00 0.01000 0 578,918
Poloniex Futures LTCUSDTPERP 0.053 0.19 0.02380 0 418,965
Bibox (Futures) 4LTC_USDT 0.000 5.60 0.00000 0 255,221
BHEX (Futures) LTC-SWAP 0.018 0.34 0.00073 0 130,312
Stormgain Futures LTC-PERPBTC 0.000 0.21 0.00400 0 55,615
CoinFLEX (Futures) LTC-USD-SWAP-LIN -2.835 0.53 0.00000 0 8

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-0625 -3.599 0.28 2,871,445 1,680,108 25/6/2021
BTSE (Futures) BBAXJ21 -2.662 0.53 87,421 48,563 30/4/2021
BTSE (Futures) BBCXJ21 -1.081 0.28 191 35,723 30/4/2021
BTSE (Futures) BBCXM21 0.404 0.38 200 25,544 25/6/2021
BTSE (Futures) BBAXM21 -0.490 0.13 91,907 23,842 25/6/2021

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 -0.009 0.17 0.10560 21,074,014 28,108,369
Gate.io (Futures) ALT_USDT -3.246 0.00 0.01000 2 1,634

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 0.283 3.34 0.00000 364,040 55,813
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
BTSE (Futures) BDIPFC 0.053 0.18 0.00000 5,698 63,007

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.