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-210326 -2.879 0.10 33,036,260 441,151,847 26/3/2021
OKEx (Futures) LTC-USDT-210326 -2.375 0.11 0 340,733,959 26/3/2021
Huobi Futures LTC_CQ -2.681 0.14 41,159,250 203,445,640 26/3/2021
OKEx (Futures) LTC-USD-210625 -5.306 0.19 15,752,890 75,439,256 25/6/2021
OKEx (Futures) LTC-USD-210129 -0.322 0.12 5,176,590 63,533,414 29/1/2021
OKEx (Futures) LTC-USD-210205 -0.565 0.19 2,067,760 62,591,403 5/2/2021
OKEx (Futures) LTC-USDT-210625 -4.219 0.13 0 47,947,013 25/6/2021
Huobi Futures LTC_NQ -5.381 0.15 10,887,990 31,547,889 25/6/2021
Binance (Futures) LTCUSD_210326 -2.847 0.16 12,120,060 31,198,183 26/3/2021
Huobi Futures LTC_CW -0.248 0.16 3,342,960 22,987,087 29/1/2021
OKEx (Futures) LTC-USDT-210129 -0.252 0.12 0 20,323,478 29/1/2021
OKEx (Futures) LTC-USDT-210205 -0.801 0.12 0 18,773,713 5/2/2021
Huobi Futures LTC_NW -0.588 0.14 2,616,570 16,873,265 5/2/2021
Huobi Futures LTC_NW -0.185 0.18 3,233,970 16,665,267 29/1/2021
Huobi Futures LTC_NQ -2.008 0.16 10,084,020 14,275,090 26/3/2021
Binance (Futures) LTCUSD_210625 -5.380 0.15 3,630,920 13,382,548 25/6/2021
FTX (Derivatives) LTC-0326 -2.839 0.22 3,686,099 3,342,596 26/3/2021

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
ZBG Futures LTC_USDT -0.541 0.11 0.07205 89,673,272 4,313,938
Binance (Futures) LTCUSDT -0.061 0.11 0.01000 57,834,703 511,685,459
CoinTiger (Futures) LTCUSDT -0.028 0.12 0.01000 57,833,599 153,132,162
Huobi Futures LTC-USD 0.078 0.11 0.01000 47,587,250 226,659,245
FTX (Derivatives) LTC-PERP -0.202 0.15 0.04560 24,688,530 59,534,828
Bitforex (Futures) SWAP-USD-LTC 0.044 0.14 0.02700 22,101,153 23,372,889
OKEx (Futures) LTC-USD-SWAP 0.015 0.13 0.01456 20,553,070 100,482,145
Phemex (Futures) LTCUSD 0.047 0.19 0.01000 17,282,808 4,010,018
Bybit LTCUSDT -0.189 0.11 0.01700 17,095,523 19,402,073
Binance (Futures) LTCUSD_PERP -0.102 0.11 0.01000 14,779,000 105,023,657
Bitget Futures CMT_LTCUSDT 0.059 0.20 -0.00232 10,335,941 10,514,325
MXC (Futures) LTC_USDT 0.023 0.13 -0.00320 9,444,782 23,717,119
Hopex LTCUSDT -0.058 0.00 0.00000 6,035,155 159,951,865
BitMEX LTCUSD -0.376 0.13 0.03280 5,813,224 14,617,643
Bitget Futures LTCUSD 0.000 0.10 0.00693 4,535,284 8,556,835
BitZ (Futures) LTC_USDT -0.116 0.16 0.00000 4,231,507 71,680,635
BitZ (Futures) 105 0.140 0.52 0.00000 4,184,590 65,062,122
BitZ (Futures) 5 0.070 0.13 0.00000 2,678,366 39,329,309
Bitfinex (Futures) TLTCF0:USTF0 0.170 0.11 0.02586 2,114,548 5,604,782
Prime XBT LTC/USD 0.000 0.72 0.00000 2,020,060 2,373,133
Kraken (Futures) PI_LTCUSD 0.539 0.16 -0.15498 1,704,914 9,411,289
Phemex LTCUSD -0.245 0.12 0.09350 1,656,001 17,816,838
Prime XBT LTC/BTC 0.000 2.33 0.00000 1,534,255 197,871
Bitfinex (Futures) LTCF0:USTF0 0.344 0.17 0.01089 1,028,638 3,874,053
Huobi Futures LTC-USDT 0.012 0.11 0.01000 898,845 237,924,950
BTSE (Futures) LTCPFC -0.603 0.29 0.00000 698,647 1,022,391
BitZ (Futures) LTC_USD -0.116 0.15 0.00000 617,660 10,602,393
Gate.io (Futures) LTC_USD -0.453 0.00 0.03530 504,753 744,869
BaseFEX LTCXBT -0.504 0.21 0.01000 15,392 159,341
OKEx (Futures) LTC-USDT-SWAP 0.028 0.15 0.03878 0 257,847,399
Biki (Futures) 10 -0.080 0.11 0.03524 0 62,425,108
Gate.io (Futures) LTC_USDT 0.037 0.00 0.01000 0 4,896,204
Stormgain Futures LTC-PERPUSDT 0.000 0.20 0.00400 0 1,553,129
HBTC (Futures) LTC-SWAP 0.054 0.15 -0.00401 0 1,061,371
Bibox (Futures) 4LTC_USDT 0.000 1.11 0.00000 0 986,504
MyCoinStory LTCUSDT_QUANTO_PERP -0.500 0.00 0.14789 0 930,313
Delta Exchange LTCUSDT -0.222 0.11 0.03870 0 928,385
HBTC (Futures) LTC-SWAP-USDT 0.003 0.23 0.03578 0 893,530
GMO Japan (Futures) LTC_JPY 0.000 3.10 0.00000 0 211,594
BHEX (Futures) LTC-SWAP 0.018 0.34 0.00073 0 130,312
CoinFLEX (Futures) LTC-USD-SWAP-LIN -3.004 1.73 0.00000 0 46

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-0326 -0.064 0.35 1,849,674 1,930,241 26/3/2021
BTSE (Futures) BBAXH21 -0.469 0.28 31,939 34,776 26/3/2021
BTSE (Futures) BBAXF21 -0.637 0.60 33,259 22,263 29/1/2021
BTSE (Futures) BBCXF21 -1.650 1.25 198 19,932 29/1/2021
BTSE (Futures) BBCXH21 -0.843 1.24 691 18,988 26/3/2021

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 0.078 0.20 0.01680 12,466,384 13,187,241
Gate.io (Futures) ALT_USDT -3.246 0.00 0.01000 2 1,634

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 -0.007 0.12 0.00000 180,766 2,748
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
BTSE (Futures) BDIPFC 0.142 0.85 0.00000 7,095 66,145

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.