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 0.135 0.20 43,126,576 100,265,676 2/12/2022
BTCC Futures LTC-QUARTERLY 0.122 0.20 43,126,576 64,687,533 31/12/2022
OKX (Futures) LTC-USDT-221230 0.094 0.02 2,939,123 9,442,866 30/12/2022
OKX (Futures) LTC-USD-221230 0.339 0.06 4,978,870 6,153,462 30/12/2022
Binance (Futures) LTCUSD_221230 0.191 0.08 1,735,910 4,971,190 30/12/2022
OKX (Futures) LTC-USDT-230331 -0.187 0.02 1,031,242 3,186,207 31/3/2023
Binance (Futures) LTCUSD_230331 -0.509 0.05 1,952,190 2,469,977 31/3/2023
OKX (Futures) LTC-USD-230331 -0.037 0.04 2,918,690 2,064,556 31/3/2023
FTX (Derivatives) LTC-1230 -6.467 0.82 887,482 1,465,341 30/12/2022
Huobi Futures LTC_CW -0.999 0.14 11,820 1,035,547 2/12/2022
BTCC Futures LTC-QUARTERLY -0.043 0.24 693,175 694,970 31/3/2023
Huobi Futures LTC_CQ 4.428 0.07 255,650 453,498 30/12/2022
Huobi Futures LTC_NW 0.276 0.27 18,690 109,261 2/12/2022

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
BTCEX (Futures) LTC-USDT-PERPETUAL 0.027 0.01 0.01000 201,270,097 550,323,987
Binance (Futures) LTCUSDT 0.051 0.01 0.01000 137,396,095 786,853,145
BingX (Futures) LTC-USDT 0.000 0.16 -0.01000 126,807,009 1,024,374,019
MXC (Futures) LTC_USDT -0.010 0.02 0.01500 103,968,399 8,772,588
BTCC Futures LTCUSDT 0.000 0.19 0.00000 42,521,938 65,204,460
Bybit (Futures) LTCUSDT 0.027 0.01 0.01000 34,794,798 114,580,123
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
Prime XBT LTC/USD 0.000 1.33 0.00000 14,899,600 600,863
FTX (Derivatives) LTC-PERP -0.355 0.18 0.32880 13,042,410 78,164,932
Prime XBT LTC/BTC 0.000 2.17 0.00000 11,548,900 47,311
Binance (Futures) LTCUSD_PERP 0.002 0.01 0.01000 10,200,190 86,078,134
AAX Futures LTCUSDTFP 0.245 0.50 0.00490 8,205,636 11,651,648
Gate.io (Futures) LTC_USDT 0.041 0.13 0.01000 7,246,123 24,001,877
Bitrue (Futures) LTC-USDT 0.081 0.05 0.01000 4,774,239 74,885,342
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 0.378 0.47 0.00000 3,755,697 8,752,684
MEXC Global (Futures) LTC_USDT -0.014 0.01 0.00500 3,230,035 81,192,496
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
dYdX Perpetual LTC-USD -0.068 0.27 -0.00108 2,328,551 7,506,410
Bitfinex (Futures) TLTCF0:USTF0 0.170 0.11 0.02586 2,114,548 5,604,782
Phemex (Futures) LTCUSD 0.004 0.03 0.01000 1,871,912 9,311,967
Huobi Futures LTC-USDT -0.019 0.04 0.01000 1,819,539 12,697,116
Phemex LTCUSD -0.245 0.12 0.09350 1,656,001 17,816,838
Hopex LTCUSDT -0.014 0.00 0.00000 1,369,789 55,320,579
Bitforex (Futures) SWAP-USD-LTC 0.041 0.07 0.03575 1,313,005 169,044,694
MyCoinStory LTCUSDT_QUANTO_PERP -0.168 0.00 0.06409 1,097,992 3,523,127
Bitmart Futures LTCUSDT 0.089 0.07 0.01450 1,030,487 510,529,074,283
Bitfinex (Futures) LTCF0:USTF0 -0.049 0.03 0.00000 994,072 3,063,223
Bitget Futures CMT_LTCUSDT -0.020 0.07 -0.00340 852,058 3,654,032
Kraken (Futures) PI_LTCUSD -0.081 0.09 -0.70902 445,662 3,095,938
CoinEx (Futures) LTC-USDT -0.054 0.07 -0.00655 397,138 7,855,255
Huobi Futures LTC-USD 0.215 0.08 0.01000 370,420 422,090
Crypto.com Exchange (Futures) LTCUSD-PERP 0.018 0.18 0.00241 288,403 288,403
HitBTC (Derivatives) LTCUSDT_PERP 0.255 0.04 0.01000 237,135 12,179,217
MCS LTCUSDT_QUANTO_PERP 0.250 0.22 0.01000 232,211 8,530
Poloniex Futures LTCUSDTPERP 0.135 0.11 0.00000 220,987 383,504
WOO Network (Futures) PERP_LTC_USDT 0.008 0.05 0.00184 217,271 1,484,371
Binance (Futures) LTCBUSD 0.021 0.01 0.01000 102,704 78,918,676
AscendEX (BitMax) (Futures) LTC-PERP 0.081 0.00 -0.01049 98,734 118,325
BitZ (Futures) LTC_USDT 0.000 0.14 0.00000 47,194 263,085
Gate.io (Futures) LTC_USD 5.027 37.25 0.01000 33,844 1,050
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
Bit.com (Futures) LTC-USDT-PERPETUAL 0.011 0.42 0.00000 575 33
Deepcoin (Derivatives) LTCUSDT 0.048 0.05 0.01205 0 509,778,194
CoinTiger (Futures) LTCUSDT 0.077 0.02 0.01000 0 236,090,109
Biki (Futures) 10 -0.061 0.15 0.11109 0 47,130,982
ZB (Derivatives) LTC_USDT 1.022 0.08 0.01000 0 4,969,201
Bybit (Futures) LTCUSD 0.000 0.03 0.01000 0 4,955,590
Deepcoin (Derivatives) LTCUSD 0.025 0.16 0.00913 0 2,299,937
MXC (Futures) LTC_USD -0.120 0.50 0.10000 0 2,167,008
GMO Japan (Futures) LTC_JPY 0.000 0.02 0.00000 0 2,086,517
Bybit LTCUSD -0.122 0.03 0.01970 0 1,924,452
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 0.08 0.00400 0 787,458
HBTC (Futures) LTC-SWAP 0.192 0.05 0.00891 0 251,917
Bibox (Futures) 4LTC_USDT 0.000 0.02 0.00000 0 233,230
Bitfinex (Futures) LTCF0:BTCF0 0.084 0.06 0.00000 0 195,562
BHEX (Futures) LTC-SWAP-USDT -0.011 0.14 -0.02237 0 53,432
Deribit LTC_USDC-PERPETUAL 1.159 0.19 -0.01362 0 52,943
Crypto.com (Futures) LTCUSD-PERP 0.000 0.11 0.00000 0 35,751
Stormgain Futures LTC-PERPBTC 0.000 2.64 0.00400 0 4,339
CoinFLEX (Futures) LTC-USD-SWAP-LIN 0.769 0.63 0.00000 0 3,120
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.

Exchange Symbol Premium (-)
Discount (+)
Spread Open Intrest 24h Volume Expiry Date
FTX (Derivatives) ALT-1230 -10.622 0.05 318,710 436,869 30/12/2022

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 -9.888 0.60 10.36560 5,825,356 8,460,075
Gate.io (Futures) ALT_USDT -3.606 4.18 0.01000 1,950 41,819
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 0.014 0.04 0.00000 274,178 24,944
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT -0.094 0.02 0.01000 6,097 3,362,530
BTSE (Futures) BDIPFC -0.143 0.30 0.00000 2,482 41,193
BTSE (Futures) BTCDOMPFC 0.526 8.07 0.00000 0 12,589,606

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.