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-211231 -3.229 0.02 34,158,130 133,662,458 31/12/2021
OKEx (Futures) LTC-USDT-211231 -3.171 0.02 6,003,617 97,877,784 31/12/2021
OKEx (Futures) LTC-USD-211022 -0.238 0.06 3,522,380 31,102,696 22/10/2021
Binance (Futures) LTCUSD_211231 -3.385 0.02 10,480,580 28,062,933 31/12/2021
OKEx (Futures) LTC-USD-220325 -6.188 0.04 9,809,150 19,442,430 25/3/2022
OKEx (Futures) LTC-USD-211029 -0.511 0.03 2,440,920 15,037,588 29/10/2021
OKEx (Futures) LTC-USDT-220325 -6.147 0.07 2,667,352 14,053,545 25/3/2022
Huobi Futures LTC_CQ -0.695 0.04 12,379,600 11,417,282 31/12/2021
OKEx (Futures) LTC-USDT-211022 -0.227 0.08 672,909 10,031,966 22/10/2021
OKEx (Futures) LTC-USDT-211029 -0.404 0.04 476,041 9,951,773 29/10/2021
FTX (Derivatives) LTC-1231 -3.205 0.09 3,409,084 6,618,035 31/12/2021
Binance (Futures) LTCUSD_220325 -6.335 0.05 4,008,470 4,143,568 25/3/2022
Huobi Futures LTC_NQ -0.402 0.26 571,280 12,412 25/3/2022

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
MEXC Global (Futures) LTC_USDT -0.001 0.02 -0.00400 137,166,302 8,871,169
Binance (Futures) LTCUSDT -0.089 0.02 0.03701 113,753,833 368,803,012
MXC (Futures) LTC_USDT -0.010 0.02 0.01500 103,968,399 8,772,588
FTX (Derivatives) LTC-PERP -0.002 0.02 0.04800 49,068,473 67,538,529
Bitforex (Futures) SWAP-USD-LTC -0.150 0.03 0.02300 39,913,079 281,110,745
Bybit LTCUSDT -0.059 0.02 0.12080 39,561,046 41,087,612
Huobi Futures LTC-USD 0.063 0.02 0.01000 31,719,220 59,316,699
Binance (Futures) LTCUSD_PERP -0.040 0.02 0.02157 29,502,480 145,438,264
OKEx (Futures) LTC-USD-SWAP -0.015 0.02 0.05819 28,096,410 41,314,769
OKEx (Futures) LTC-USDT-SWAP -0.077 0.02 0.02275 20,811,502 89,533,919
dYdX Perpetual LTC-USD -0.038 0.05 0.00122 20,674,002 12,766,828
Huobi Futures LTC-USDT -0.061 0.02 0.03693 16,357,075 100,515,814
BitMEX LTCUSD -0.126 0.02 0.12110 8,217,972 22,218,442
Bitget Futures CMT_LTCUSDT -0.016 0.06 0.05175 7,884,437 9,694,751
Prime XBT LTC/USD 0.000 0.53 0.00000 6,792,725 1,012,819
Phemex (Futures) LTCUSD -0.177 0.02 0.05318 6,455,433 19,094,462
Hopex LTCUSDT -0.038 0.00 0.00000 4,752,435 48,046,881
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 -0.089 0.02 0.03038 4,156,126 3,333,830
Prime XBT LTC/BTC 0.000 3.23 0.00000 3,965,198 49,056
Bitfinex (Futures) LTCF0:USTF0 -0.126 0.01 0.05337 2,679,387 3,716,236
BitZ (Futures) 5 0.070 0.13 0.00000 2,678,366 39,329,309
Gate.io (Futures) LTC_USDT -0.177 0.00 0.01020 2,596,387 40,015,928
Bitfinex (Futures) TLTCF0:USTF0 0.170 0.11 0.02586 2,114,548 5,604,782
BTSE (Futures) LTCPFC 0.120 0.03 0.00000 1,944,621 4,630,409
Phemex LTCUSD -0.245 0.12 0.09350 1,656,001 17,816,838
Kraken (Futures) PI_LTCUSD 0.016 0.11 0.08978 1,546,328 9,572,347
MyCoinStory LTCUSDT_QUANTO_PERP -0.168 0.00 0.06409 1,097,992 3,523,127
Gate.io (Futures) LTC_USD -0.777 0.00 0.01000 262,595 95,890
AscendEX (BitMax) (Futures) LTC-PERP -0.196 0.00 0.06116 127,807 105,117
BitZ (Futures) LTC_USDT 0.000 0.14 0.00000 47,194 263,085
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
CoinFLEX (Futures) LTC-USD-SWAP-LIN 0.000 0.50 0.00020 7,517 8,581
CoinTiger (Futures) LTCUSDT -0.057 0.02 0.03679 0 110,478,192
Biki (Futures) 10 -0.061 0.15 0.11109 0 47,130,982
Stormgain Futures LTC-PERPUSDT 0.000 0.11 0.00400 0 3,043,312
MXC (Futures) LTC_USD -0.120 0.50 0.10000 0 2,167,008
GMO Japan (Futures) LTC_JPY 0.000 0.17 0.00000 0 1,571,515
HBTC (Futures) LTC-SWAP-USDT 0.224 0.10 0.01470 0 1,252,724
Crypto.com Exchange (Futures) LTCUSD-PERP 0.021 0.09 0.00002 0 1,060,676
Delta Exchange LTCUSDT -0.297 0.02 0.14590 0 985,727
Bitfinex (Futures) LTCF0:BTCF0 -0.116 0.02 0.01178 0 496,160
HBTC (Futures) LTC-SWAP 0.192 0.05 0.00891 0 251,917
Bibox (Futures) 4LTC_USDT 0.000 0.01 0.00000 0 191,622
Poloniex Futures LTCUSDTPERP -0.091 0.15 0.00000 0 116,572
BHEX (Futures) LTC-SWAP-USDT -0.011 0.14 -0.02237 0 43,679
Crypto.com (Futures) LTCUSD-PERP 0.000 0.11 0.00000 0 35,751
Stormgain Futures LTC-PERPBTC 0.000 2.58 0.00400 0 10,211
BHEX (Futures) LTC-SWAP 0.047 0.03 0.02221 0 40

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-1231 -1.693 0.23 5,429,180 5,984,473 31/12/2021

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 0.02 -0.01200 31,813,602 35,408,971
Gate.io (Futures) ALT_USDT -3.356 0.00 0.01000 49 114,149
BTSE (Futures) BBAXPFC -1.576 0.41 0.00000 0 147,887
BTSE (Futures) BBCXPFC 0.475 0.74 0.00000 0 57,311

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 -0.025 0.05 0.00000 960,225 83,162
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT -0.008 0.02 0.01000 4,820 9,437,558
BTSE (Futures) BDIPFC -0.095 0.28 0.00000 4,178 17,889

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.