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-210924 -0.184 0.04 15,360,080 105,467,163 24/9/2021
OKEx (Futures) LTC-USDT-210924 -0.183 0.07 5,224,989 91,859,127 24/9/2021
OKEx (Futures) LTC-USD-210730 0.078 0.10 3,370,900 31,061,853 30/7/2021
Huobi Futures LTC_CQ -0.294 0.05 17,251,130 23,955,847 24/9/2021
OKEx (Futures) LTC-USDT-211231 -1.878 0.10 2,672,074 18,965,394 31/12/2021
OKEx (Futures) LTC-USD-211231 -1.858 0.12 8,203,210 14,927,829 31/12/2021
Huobi Futures LTC_NQ -2.234 0.08 12,131,730 14,351,445 24/9/2021
Binance (Futures) LTCUSD_210924 -0.281 0.05 4,878,560 13,516,312 24/9/2021
OKEx (Futures) LTC-USD-210806 0.323 0.10 1,717,820 13,203,745 6/8/2021
OKEx (Futures) LTC-USDT-210730 0.041 0.09 1,092,680 12,546,919 30/7/2021
OKEx (Futures) LTC-USDT-210806 0.371 0.09 385,766 8,006,825 6/8/2021
Huobi Futures LTC_CW -0.031 0.05 1,965,970 5,134,176 30/7/2021
Huobi Futures LTC_NW 0.114 0.05 1,283,020 5,050,555 6/8/2021
Binance (Futures) LTCUSD_211231 -1.619 0.02 2,581,160 4,752,666 31/12/2021
Huobi Futures LTC_NW 0.129 0.04 707,630 2,945,368 30/7/2021
FTX (Derivatives) LTC-0924 0.052 0.10 11,247,642 1,143,841 24/9/2021

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
MXC (Futures) LTC_USDT -0.010 0.02 0.01500 103,968,399 8,772,588
MEXC Global (Futures) LTC_USDT 0.031 0.02 0.01740 94,216,465 7,609,007
Binance (Futures) LTCUSDT 0.014 0.02 0.01000 53,585,901 417,233,987
FTX (Derivatives) LTC-PERP -0.048 0.04 0.01200 25,439,191 49,817,714
Phemex (Futures) LTCUSD 0.110 0.01 -0.00436 24,650,111 40,791,543
OKEx (Futures) LTC-USD-SWAP -0.029 0.04 -0.00818 23,484,120 45,146,776
Huobi Futures LTC-USD 0.025 0.02 -0.02964 22,889,960 34,774,409
Bybit LTCUSDT 0.086 0.02 0.01000 19,957,985 17,313,047
OKEx (Futures) LTC-USDT-SWAP 0.023 0.06 0.00430 18,055,790 86,046,859
Binance (Futures) LTCUSD_PERP 0.062 0.02 0.00689 14,365,230 140,360,183
Huobi Futures LTC-USDT 0.036 0.02 -0.00881 13,438,211 117,798,753
Bitforex (Futures) SWAP-USD-LTC -0.034 0.04 0.01000 10,818,061 4,867,001
BitMEX LTCUSD -0.068 0.09 0.01590 6,301,018 6,353,345
ZBG Futures LTC_USDT -0.117 0.04 0.07987 5,689,124 7,070,662
Bitget Futures CMT_LTCUSDT 0.029 0.11 -0.00110 5,448,358 8,609,293
Hopex LTCUSDT -0.038 0.00 0.00000 4,752,435 48,046,881
Bitget Futures LTCUSD -0.021 0.11 0.02420 4,253,720 7,249,512
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
Gate.io (Futures) LTC_USDT 0.057 0.00 0.01000 2,458,878 12,306,444
Kraken (Futures) PI_LTCUSD 0.064 0.16 -0.15572 2,396,062 2,506,791
Prime XBT LTC/USD 0.000 0.71 0.00000 2,207,366 1,553,354
Prime XBT LTC/BTC 0.000 2.78 0.00000 2,116,682 285,567
Bitfinex (Futures) TLTCF0:USTF0 0.170 0.11 0.02586 2,114,548 5,604,782
BitZ (Futures) LTC_USDT 0.014 0.19 0.00000 1,955,225 25,727,406
Phemex LTCUSD -0.245 0.12 0.09350 1,656,001 17,816,838
BTSE (Futures) LTCPFC -0.112 0.25 0.00000 1,419,550 3,468,140
Bitfinex (Futures) LTCF0:USTF0 -0.070 0.03 0.00000 933,737 3,015,673
MyCoinStory LTCUSDT_QUANTO_PERP -0.073 0.00 0.01000 693,371 1,093,635
BitZ (Futures) LTC_USD -0.007 0.19 0.00000 560,317 7,480,338
Gate.io (Futures) LTC_USD -0.128 0.00 0.01000 65,219 76,678
BaseFEX LTCXBT -0.504 0.21 0.01000 15,392 159,341
CoinTiger (Futures) LTCUSDT 0.039 0.02 0.01000 0 125,181,788
Biki (Futures) 10 -0.061 0.15 0.11109 0 47,130,982
Stormgain Futures LTC-PERPUSDT 0.000 0.13 0.00400 0 2,969,076
MXC (Futures) LTC_USD -0.120 0.50 0.10000 0 2,167,008
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
Crypto.com Exchange (Futures) LTCUSD-PERP -0.043 0.23 0.00000 0 767,581
BHEX (Futures) LTC-SWAP-USDT -0.054 0.05 0.03730 0 733,226
GMO Japan (Futures) LTC_JPY 0.000 0.23 0.00000 0 536,449
HBTC (Futures) LTC-SWAP 0.192 0.05 0.00891 0 251,917
Bitfinex (Futures) LTCF0:BTCF0 -0.131 0.08 0.00000 0 210,184
Bibox (Futures) 4LTC_USDT 0.000 5.60 0.00000 0 196,987
Poloniex Futures LTCUSDTPERP -0.043 0.14 0.00000 0 140,720
BHEX (Futures) LTC-SWAP -0.055 0.11 0.02855 0 86,468
dYdX Perpetual LTC-USD 0.420 0.14 0.00125 0 40,660
Crypto.com (Futures) LTCUSD-PERP 0.000 0.11 0.00000 0 35,751
CoinFLEX (Futures) LTC-USD-SWAP-LIN 0.000 0.50 0.00020 0 6,811
Stormgain Futures LTC-PERPBTC 0.000 2.26 0.00400 0 2,029

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-0924 0.615 0.26 4,271,398 14,779 24/9/2021

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 0.025 0.11 0.01200 17,637,837 9,517,493
Gate.io (Futures) ALT_USDT -1.899 0.00 0.01000 37 5,369
BTSE (Futures) BBAXPFC 0.312 0.35 0.00000 0 140,088
BTSE (Futures) BBCXPFC 0.015 0.75 0.00000 0 76,698

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 0.017 0.01 0.00000 952,396 230,470
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
BTSE (Futures) BDIPFC 0.105 0.29 0.00000 4,436 46,594
Binance (Futures) BTCDOMUSDT 0.159 0.02 -0.08084 2,074 5,722,329

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.