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-201225 -2.217 0.14 16,395,730 117,379,064 25/12/2020
OKEx (Futures) LTC-USDT-201225 -1.793 0.15 0 88,322,487 25/12/2020
Huobi Futures LTC_CQ -2.272 0.10 16,854,040 78,202,808 25/12/2020
OKEx (Futures) LTC-USD-201030 -0.317 0.14 2,689,670 19,821,662 30/10/2020
OKEx (Futures) LTC-USD-201106 -0.569 0.15 1,031,370 16,558,161 6/11/2020
OKEx (Futures) LTC-USD-210326 -3.217 0.14 3,679,170 14,282,536 26/3/2021
OKEx (Futures) LTC-USDT-210326 -1.477 0.15 0 14,106,676 26/3/2021
Huobi Futures LTC_CW -0.318 0.16 910,410 8,878,830 30/10/2020
OKEx (Futures) LTC-USDT-201030 -0.456 0.19 0 6,676,153 30/10/2020
OKEx (Futures) LTC-USDT-201106 -0.525 0.14 0 6,129,900 6/11/2020
Huobi Futures LTC_NW -0.172 0.18 946,980 4,501,372 30/10/2020
Huobi Futures LTC_NQ -3.317 0.17 1,834,270 4,158,490 26/3/2021
Huobi Futures LTC_NW -0.455 0.16 525,110 3,652,692 6/11/2020
FTX (Derivatives) LTC-1225 -1.792 0.19 1,325,544 2,484,396 25/12/2020
Huobi Futures LTC_NQ -0.983 0.16 3,730,000 2,097,003 25/12/2020
Kraken (Futures) FI_LTCUSD_201030 -0.287 0.32 0 654,752 30/10/2020
BitMEX LTCZ20 0.374 0.12 1,714,948 626,859 25/12/2020
BTSE (Futures) LTCV20 0.782 1.26 12,158 608,972 30/10/2020
BTSE (Futures) LTCZ20 -0.470 1.24 34,753 607,694 25/12/2020
Kraken (Futures) FI_LTCUSD_201225 0.196 0.39 0 88,636 25/12/2020

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
CoinTiger (Futures) LTCUSDT -0.082 0.12 0.01982 21,707,775 39,439,454
Binance (Futures) LTCUSDT -0.110 0.12 0.01978 21,704,897 131,458,831
OKEx (Futures) LTC-USD-SWAP -0.060 0.12 0.05459 11,740,310 38,699,704
FTX (Derivatives) LTC-PERP -0.005 0.14 0.04560 8,874,952 11,824,029
BitMEX LTCUSD -0.198 0.12 0.08570 5,364,748 12,713,553
Phemex (Futures) LTCUSD -0.058 0.12 0.01000 3,410,473 13,387,465
BitZ (Futures) 105 0.145 0.13 0.00000 3,102,569 15,755,166
BitZ (Futures) 5 0.000 0.12 0.00000 2,733,864 13,910,012
Phemex LTCUSD -0.245 0.12 0.09350 1,656,001 17,816,838
Binance (Futures) LTCUSD_PERP -0.137 0.15 0.01000 1,307,040 7,476,730
Prime XBT LTC/USD 0.000 1.75 0.00000 1,243,525 1,926,598
Kraken (Futures) PI_LTCUSD -0.054 0.19 -0.22780 906,233 8,525,499
MXC (Futures) LTC_USDT -0.002 0.12 -0.00940 896,975 6,243,751
Bitforex (Futures) SWAP-USD-LTC -0.036 0.19 0.09100 761,092 6,096,469
Prime XBT LTC/BTC 0.000 2.27 0.00000 632,830 274,514
Bybit LTCUSDT -0.162 0.12 0.16370 559,801 4,113,296
Hopex LTCUSDT -0.036 0.00 0.00000 510,463 23,650,739
Gate.io (Futures) LTC_USD -0.449 0.00 0.01000 411,914 185,247
BTSE (Futures) LTCPFC 0.508 0.36 0.00000 304,665 383,062
BaseFEX LTCXBT -0.504 0.21 0.01000 15,392 159,341
Bitfinex (Futures) TLTCF0:USTF0 0.097 0.18 0.00000 942 64,178
Huobi Futures LTC-USD -0.111 0.12 0.02927 0 87,454,837
OKEx (Futures) LTC-USDT-SWAP -0.020 0.12 0.03490 0 61,155,356
Biki (Futures) 10 -0.084 0.19 0.01022 0 25,711,471
Bitget Futures LTCUSD -0.022 0.19 -0.00986 0 3,332,865
ZBG Futures LTC_USDT 0.000 0.00 0.00000 0 2,893,675
HBTC (Futures) LTC-SWAP-USDT -0.042 0.17 0.07459 0 1,895,308
Gate.io (Futures) LTC_USDT -0.054 0.00 0.01000 0 1,852,041
Bibox (Futures) 4LTC_USDT 0.000 0.16 0.00000 0 1,517,395
Bitget Futures CMT_LTCUSDT 0.000 0.17 -0.00846 0 1,223,435
Delta Exchange LTCUSDT -0.162 0.14 0.03110 0 463,179
BHEX (Futures) LTC-SWAP 0.018 0.34 0.00073 0 130,312
HBTC (Futures) LTC-SWAP -0.005 0.19 0.03148 0 122,687
GMO Japan (Futures) LTC_JPY 0.000 0.87 0.00000 0 96,659

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-1225 0.223 0.17 2,475,996 141,308 25/12/2020
BTSE (Futures) BBCXZ20 0.541 1.04 272 25,040 25/12/2020
BTSE (Futures) BBAXV20 0.275 0.49 14,341 13,359 30/10/2020
BTSE (Futures) BBCXV20 0.877 0.33 195 11,997 30/10/2020
BTSE (Futures) BBAXZ20 -0.969 0.68 17,967 1,996 25/12/2020

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 0.098 0.15 -0.06480 6,644,822 2,772,175
Gate.io (Futures) ALT_USDT -2.239 0.00 0.01000 1,162 986

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) TBTCDOMF0:USTF0 -0.006 0.12 0.00000 22,452 238,101
BTSE (Futures) BDIPFC 0.178 0.17 0.00000 6,268 4,870

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.