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.

At the moment however, there is not any future contract for LTC available.

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 -0.051 0.01 0.01000 72,824,507 177,773,353
Bybit (Futures) LTCUSDT -0.118 0.01 0.00402 66,035,541 43,055,804
WhiteBIT Futures LTC_PERP -0.222 0.20 0.01001 39,534,523 5,014,347
Blofin LTC-USDT 0.000 0.02 0.02268 25,713,298 60,265,688
Binance (Futures) LTCUSD_PERP -0.026 0.01 0.01000 21,599,260 35,150,820
BingX (Futures) LTC-USDT 0.118 0.01 0.01330 21,286,706 22,386,089
HTX Futures LTC-USDT -0.440 0.06 0.01000 18,514,790 24,805,406
Coincatch Derivatives LTCUSDT_UMCBL 0.012 0.04 0.00990 17,424,236 793,489
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
XT.COM (Derivatives) LTC_USDT 0.047 0.01 0.01000 17,202,520 27,282,248
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
FTX (Derivatives) LTC-PERP -0.355 0.18 0.32880 13,042,410 78,164,932
BitVenus Futures LTC-SWAP-USDT 0.034 0.12 0.01000 12,735,053 42,962,728
MUFEX LTCUSDT -0.121 0.01 0.04010 11,781,681 253,196,579
Phemex (Futures) LTC-PERPUSDT 0.010 0.01 0.01000 11,013,717 4,773,084
Toobit Futures LTC-SWAP-USDT -0.046 0.02 0.01098 10,808,596 16,122,582
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
Prime XBT LTC/USD 0.000 0.96 0.00000 8,173,200 302,528
MEXC (Futures) LTC_USDT -0.061 0.01 0.01380 7,843,377 7,455,651
MEXC Global (Futures) LTC_USDT 0.057 0.01 0.01510 7,586,727 22,485,928
BitMake Futures LTCUSDT -0.024 0.01 0.00000 7,097,267 81,521,447
Bitforex (Futures) SWAP-USD-LTC -0.087 0.07 0.01179 5,900,003 131,704,676
Phemex (Futures) LTCUSD 0.034 0.04 0.01000 5,594,691 113,178,167
CoinTR Pro (Derivatives) LTCUSDT -0.072 0.00 0.02920 5,507,107 105,219,302
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
Prime XBT LTC/BTC 0.000 7.69 0.00000 4,122,700 5
ZBG Futures LTC_USDT 0.050 0.01 -0.03625 4,118,855 1,121,231
Bitrue (Futures) LTC-USDT 0.090 0.01 0.01005 4,047,877 29,365,125
Gate.io (Futures) LTC_USDT -0.095 0.11 0.07270 3,709,916 34,935,573
Bitfinex (Futures) LTCF0:USTF0 0.414 0.01 0.14519 3,465,964 2,277,750
Huobi Futures LTC-USDT 0.049 0.02 0.01000 3,153,157 11,498,693
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
Phemex LTCUSD -0.245 0.12 0.09350 1,656,001 17,816,838
dYdX Perpetual LTC-USD 0.116 0.14 0.00125 1,534,462 3,134,387
MyCoinStory LTCUSDT_QUANTO_PERP -0.168 0.00 0.06409 1,097,992 3,523,127
Huobi Futures LTC-USD 0.226 0.30 0.01000 1,038,190 1,268,278
Bitget Futures CMT_LTCUSDT -0.020 0.07 -0.00340 852,058 3,654,032
HTX Futures LTC-USD -0.236 0.17 0.08369 776,390 1,473,695
CoinEx (Futures) LTC-USDT -0.042 0.03 0.00863 688,078 897,743
Kraken (Futures) PI_LTCUSD 0.087 0.08 -0.00005 640,698 172,131
BTSE (Futures) LTC-PERP -0.026 0.17 0.00988 608,806 24,864,056
ApeX Pro LTCUSDC -0.070 0.01 0.00216 245,150 809,296
MCS LTCUSDT_QUANTO_PERP 0.250 0.22 0.01000 232,211 8,530
Bitmart Futures LTCUSDT -0.048 0.08 0.01000 227,378 33,161,912
Stormgain Futures LTC-PERPUSDT 0.000 0.05 0.00400 219,530 273,558
AscendEX (BitMax) (Futures) LTC-PERP -0.091 0.00 0.00600 212,588 5,727,786
WOO Network (Futures) PERP_LTC_USDT -0.013 0.04 0.00072 184,480 2,008,262
Phemex (Futures) LTC-PERPUSD 0.029 0.04 0.01000 159,195 45,926,102
Poloniex Futures LTCUSDTPERP -0.028 0.15 0.01000 117,027 1,599,494
Deribit LTC_USDC-PERPETUAL 0.043 0.13 0.01560 101,512 99,831
XT.COM (Derivatives) LTC_USD -0.028 0.01 -0.00990 100,004 1,700,071
WOO X (Futures) PERP_LTC_USDT -0.040 0.03 0.01480 93,217 480,841
HitBTC (Derivatives) LTCUSDT_PERP -0.014 0.04 0.01000 75,896 851,654
Hyperliquid LTC-USD -0.025 0.02 0.00125 69,585 295,142
BitZ (Futures) LTC_USDT 0.000 0.14 0.00000 47,194 263,085
Crypto.com Exchange (Futures) LTCUSD-PERP 0.028 0.06 0.00325 41,345 22,609
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
Kwenta Derivatives LTC_SUSD 0.000 0.00 0.04043 17,722 40,132
BaseFEX LTCXBT -0.504 0.21 0.01000 15,392 159,341
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
Kine Protocol (Derivatives) LTC-PERP 0.000 0.00 0.02000 2,077 11,252,661
Opnx Derivatives LTC-OUSD-SWAP-LIN 0.098 0.00 -0.00000 1,254 279
Bit.com (Futures) LTC-USDT-PERPETUAL 0.011 0.42 0.00000 575 33
Stormgain Futures LTC-PERPBTC 0.000 2.67 0.00400 0 93
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 0.068 0.03 0.02185 0 123,696,669
Bitunix Futures LTC_USDT -0.043 0.01 0.01300 0 109,383,069
Biki (Futures) 10 -0.061 0.15 0.11109 0 47,130,982
BTCC Futures LTCUSDT 0.014 0.07 0.00000 0 28,642,324
Fairdesk Derivatives LTC-USDT-PERP 0.097 -1.90 0.00170 0 28,302,370
ZB (Derivatives) LTC_USDT 1.022 0.08 0.01000 0 4,969,201
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
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
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
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 (Futures) ALT_USDT -0.058 0.01 0.02730 2,568,124 5,809,957
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

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
BingX (Futures) BTCDOM-USDT -0.003 0.01 -0.01020 542,271 1,355,399
Bitfinex (Futures) BTCDOMF0:USTF0 0.095 0.15 -0.05461 502,413 259,229
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT 0.072 0.01 -0.02318 3,779 1,738,556
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.