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
Binance (Futures) LTCUSD_230929 -0.073 0.03 1,961,090 272,212 29/9/2023
OKX (Futures) LTC-USD-230929 -0.168 0.02 3,266,660 205,586 29/9/2023
Binance (Futures) LTCUSD_231229 -0.982 0.03 1,360,240 196,801 29/12/2023
OKX (Futures) LTC-USD-231229 -1.285 0.02 2,833,890 82,115 29/12/2023
OKX (Futures) LTC-USDT-231229 -1.195 0.02 916,058 58,008 29/12/2023
OKX (Futures) LTC-USDT-230929 0.000 0.03 1,518,457 34,011 29/9/2023

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
MXC (Futures) LTC_USDT -0.010 0.02 0.01500 103,968,399 8,772,588
Binance (Futures) LTCUSDT 0.055 0.02 0.00257 74,440,387 92,493,470
Bybit (Futures) LTCUSDT 0.063 0.02 0.01000 33,427,388 19,243,010
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
BingX (Futures) LTC-USDT 0.063 0.02 0.00510 15,208,428 17,885,435
Bitmart Futures 14 0.052 0.05 -0.03000 15,134,693 542,896,679
Binance (Futures) LTCUSD_PERP 0.073 0.02 -0.00296 13,862,730 9,518,693
FTX (Derivatives) LTC-PERP -0.355 0.18 0.32880 13,042,410 78,164,932
WhiteBIT Futures LTC_PERP 0.047 0.31 0.01000 11,047,999 3,395,903
Prime XBT LTC/BTC 0.000 4.00 0.00000 10,820,800 108
Prime XBT LTC/USD 0.000 1.54 0.00000 10,758,300 3,572
Phemex (Futures) LTC-PERPUSDT 0.058 0.02 -0.00611 9,143,501 74,169,646
BTSE (Futures) LTCPFC 0.044 0.08 0.00000 8,721,322 25,454,729
AAX Futures LTCUSDTFP 0.245 0.50 0.00490 8,205,636 11,651,648
MEXC Global (Futures) LTC_USDT 0.057 0.01 0.01510 7,586,727 22,485,928
Phemex (Futures) LTCUSD 0.034 0.04 0.01000 5,594,691 113,178,167
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
Gate.io (Futures) LTC_USDT 0.110 0.16 0.00190 3,506,562 6,108,937
HTX Futures LTC-USDT 0.041 0.03 0.01000 3,463,392 4,469,174
MEXC (Futures) LTC_USDT 0.047 0.02 0.00250 3,322,006 9,440,851
Huobi Futures LTC-USDT 0.049 0.02 0.01000 3,153,157 11,498,693
CoinTR Pro (Derivatives) LTCUSDT 0.047 0.00 0.01000 3,052,237 54,249,401
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
Bitfinex (Futures) TLTCF0:USTF0 0.170 0.11 0.02586 2,114,548 5,604,782
BTSE (Futures) LTC-PERP -0.056 0.16 0.00009 1,789,827 28,870,887
Phemex LTCUSD -0.245 0.12 0.09350 1,656,001 17,816,838
dYdX Perpetual LTC-USD -0.063 0.16 0.00046 1,365,418 800,665
Bitforex (Futures) SWAP-USD-LTC 0.099 0.08 -0.02752 1,343,070 204,568,055
MyCoinStory LTCUSDT_QUANTO_PERP -0.168 0.00 0.06409 1,097,992 3,523,127
Bitfinex (Futures) LTCF0:USTF0 0.036 0.03 0.00000 1,052,900 101,500
Huobi Futures LTC-USD 0.226 0.30 0.01000 1,038,190 1,268,278
HTX Futures LTC-USD 0.134 0.16 0.01000 1,031,440 2,360,553
Bitrue (Futures) LTC-USDT 0.063 0.06 0.00255 944,345 14,158,892
Bitget Futures CMT_LTCUSDT -0.020 0.07 -0.00340 852,058 3,654,032
Kraken (Futures) PI_LTCUSD -0.016 0.09 0.05732 428,433 133,576
Phemex (Futures) LTC-PERPUSD 0.089 0.05 0.01000 360,735 120,848,910
CoinEx (Futures) LTC-USDT 0.000 0.02 -0.03477 302,657 227,396
Bitmart Futures LTCUSDT 0.077 0.11 0.00215 249,651 18,482,906
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
MUFEX LTCUSDT 0.094 0.06 0.01000 105,155 1,075,754
Poloniex Futures LTCUSDTPERP 0.031 0.17 0.01000 98,480 107,633
Stormgain Futures LTC-PERPUSDT 0.000 0.12 0.00400 92,869 77,697
Crypto.com Exchange (Futures) LTCUSD-PERP 0.016 0.05 -0.00040 73,801 39,924
Deribit LTC_USDC-PERPETUAL 0.099 0.19 0.02663 53,050 1,772
HitBTC (Derivatives) LTCUSDT_PERP 0.082 0.09 0.01000 48,824 1,830,522
BitZ (Futures) LTC_USDT 0.000 0.14 0.00000 47,194 263,085
Hyperliquid LTC-USD 0.101 0.03 -0.00183 45,856 172,867
AscendEX (BitMax) (Futures) LTC-PERP 0.079 0.00 -0.01000 44,306 2,890,057
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
WOO X (Futures) PERP_LTC_USDT 0.000 0.06 -0.00675 17,649 310,112
BaseFEX LTCXBT -0.504 0.21 0.01000 15,392 159,341
Kwenta Derivatives LTC_SUSD 0.000 0.00 0.15490 14,875 37,649
Opnx Derivatives LTC-USDT-SWAP-LIN 0.000 0.00 0.00000 14,765 188
Binance (Futures) LTCBUSD 0.144 0.02 -0.04726 14,313 3,348,556
Opnx Derivatives LTC-OUSD-SWAP-LIN -0.031 0.00 0.00004 1,337 261,759
Bit.com (Futures) LTC-USDT-PERPETUAL 0.011 0.42 0.00000 575 33
BTCEX (Futures) LTC-USDT-PERPETUAL 0.041 0.02 0.00520 0 366,394,589
CoinTiger (Futures) LTCUSDT 0.107 0.02 0.00214 0 143,214,388
Deepcoin (Derivatives) LTCUSDT 0.037 0.03 0.00279 0 104,720,029
Biki (Futures) 10 -0.061 0.15 0.11109 0 47,130,982
BTCC Futures LTCUSDT 0.000 0.05 0.00000 0 43,845,169
Fairdesk Derivatives LTC-USDT-PERP 0.079 -1.92 0.00100 0 32,515,158
XT.COM (Derivatives) LTC_USDT 0.046 0.00 -0.00350 0 8,869,642
ZB (Derivatives) LTC_USDT 1.022 0.08 0.01000 0 4,969,201
BitMake Futures LTCUSDT 0.016 0.02 0.00000 0 3,474,446
BIT (Futures) USD-M:LTC-USD-PERPETUAL -0.052 0.03 0.01000 0 3,160,450
Toobit Derivatives LTC-SWAP-USDT 0.068 0.04 0.01000 0 2,743,848
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
Coincatch Derivatives LTCUSDT_UMCBL -0.015 0.05 -0.01380 0 1,555,739
Toobit Futures LTC-SWAP-USDT 0.065 0.08 0.01000 0 1,304,821
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
XT.COM (Derivatives) LTC_USD 0.046 0.00 0.01000 0 899,621
Bybit (Futures) LTCUSD -0.031 0.02 0.01000 0 577,230
Deepcoin (Derivatives) LTCUSD 0.062 0.03 0.01999 0 414,425
HBTC (Futures) LTC-SWAP 0.192 0.05 0.00891 0 251,917
AQX (Derivatives) LTC-USDT.PERP 0.045 0.04 0.01000 0 212,765
MEXC Global (Futures) LTC_MUSDT -0.335 94.73 0.00000 0 186,276
GMO Japan (Futures) LTC_JPY 0.000 0.34 0.00000 0 117,872
Bibox (Futures) 4LTC_USDT 0.000 0.02 0.00000 0 70,576
Flipster LTC-USDT.PERP 0.168 0.06 0.01000 0 59,543
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 0.010 0.04 0.00000 0 16,595
CoinFLEX (Futures) LTC-USD-SWAP-LIN 0.769 0.63 0.00000 0 3,120
Stormgain Futures LTC-PERPBTC 0.000 2.82 0.00400 0 1,167
BHEX (Futures) LTC-SWAP 0.047 0.03 0.02221 0 40
Globe (Derivatives) LTC-PERP 0.677 0.08 0.00000 0 27
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 -1.339 1.77 0.10000 45,019 441,973
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
MEXC (Futures) ALT_USDT -0.877 3.86 0.04130 -72 796,070

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 -0.068 0.13 0.00000 605,588 1,279
BingX (Futures) BTCDOM-USDT -0.003 0.01 -0.01020 542,271 1,355,399
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT 0.129 0.02 -0.00951 6,646 1,370,812
BTSE (Futures) BDIPFC -0.143 0.30 0.00000 2,482 41,193
BTSE (Futures) BTCDOMPFC 0.600 3.35 0.00000 0 5,990,922

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.