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
- Litecoin Perpetual Swaps
- Future Contracts on Indexes with Litecoin embeded
- Perpetual Swaps on Indexes with Litecoin component
- Other crypto related Indexes (Perpetual Swaps)
- Negative correlation with Litecoin
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-QUARTERLY | 0.000 | 0.46 | 0 | 62,214,339 | 31/3/2023 |
OKX (Futures) | LTC-USDT-230630 | -1.247 | 0.01 | 2,372,278 | 4,358,032 | 30/6/2023 |
OKX (Futures) | LTC-USDT-230331 | -0.160 | 0.09 | 1,798,674 | 3,879,247 | 31/3/2023 |
OKX (Futures) | LTC-USDT-230929 | -2.402 | 0.04 | 530,472 | 3,724,750 | 29/9/2023 |
OKX (Futures) | LTC-USD-230630 | -1.435 | 0.01 | 9,672,460 | 3,613,753 | 30/6/2023 |
OKX (Futures) | LTC-USDT-230407 | -0.214 | 0.07 | 114,926 | 3,603,670 | 7/4/2023 |
OKX (Futures) | LTC-USD-230929 | -2.536 | 0.05 | 1,759,610 | 2,573,111 | 29/9/2023 |
Binance (Futures) | LTCUSD_230331 | -0.175 | 0.04 | 5,194,080 | 2,101,483 | 31/3/2023 |
Binance (Futures) | LTCUSD_230630 | -1.094 | 0.02 | 4,681,460 | 1,866,641 | 30/6/2023 |
OKX (Futures) | LTC-USD-230331 | -0.064 | 0.02 | 1,706,470 | 1,265,006 | 31/3/2023 |
OKX (Futures) | LTC-USD-230407 | -0.150 | 0.05 | 75,510 | 797,072 | 7/4/2023 |
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 |
---|---|---|---|---|---|---|
Binance (Futures) | LTCUSDT | 0.006 | 0.01 | 0.00388 | 137,302,090 | 484,850,572 |
MXC (Futures) | LTC_USDT | -0.010 | 0.02 | 0.01500 | 103,968,399 | 8,772,588 |
Bybit (Futures) | LTCUSDT | 0.032 | 0.01 | 0.01000 | 49,751,866 | 88,228,597 |
Gate.io (Futures) | LTC_USDT | 0.054 | 0.11 | 0.00460 | 47,455,805 | 31,837,724 |
BingX (Futures) | LTC-USDT | 0.011 | 0.01 | -0.01010 | 31,732,748 | 34,812,692 |
Binance (Futures) | LTCUSD_PERP | 0.017 | 0.01 | 0.00444 | 25,941,540 | 96,758,491 |
Prime XBT | LTC/BTC | 0.000 | 2.94 | 0.00000 | 21,946,600 | 134,027 |
Prime XBT | LTC/USD | 0.000 | 1.05 | 0.00000 | 17,493,400 | 552,190 |
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 |
FTX (Derivatives) | LTC-PERP | -0.355 | 0.18 | 0.32880 | 13,042,410 | 78,164,932 |
Phemex (Futures) | LTCUSD | 0.090 | 0.01 | 0.01000 | 10,939,615 | 88,195,241 |
AAX Futures | LTCUSDTFP | 0.245 | 0.50 | 0.00490 | 8,205,636 | 11,651,648 |
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 | 0.220 | 0.17 | 0.00000 | 3,713,300 | 986,494 |
dYdX Perpetual | LTC-USD | 0.136 | 0.11 | -0.00366 | 2,923,071 | 7,559,323 |
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 |
MEXC Global (Futures) | LTC_USDT | 0.075 | 0.01 | 0.00890 | 2,300,521 | 28,381,558 |
Bitfinex (Futures) | TLTCF0:USTF0 | 0.170 | 0.11 | 0.02586 | 2,114,548 | 5,604,782 |
Huobi Futures | LTC-USDT | 0.047 | 0.01 | 0.01000 | 2,014,369 | 8,555,906 |
Bitrue (Futures) | LTC-USDT | 0.064 | 0.05 | 0.00398 | 1,927,240 | 48,986,804 |
Bitforex (Futures) | SWAP-USD-LTC | 0.018 | 0.05 | 0.01874 | 1,885,038 | 232,825,008 |
Phemex | LTCUSD | -0.245 | 0.12 | 0.09350 | 1,656,001 | 17,816,838 |
Bitfinex (Futures) | LTCF0:USTF0 | 0.057 | 0.03 | 0.00000 | 1,612,953 | 1,225,964 |
Bitmart Futures | LTCUSDT | 0.037 | 0.03 | -0.04000 | 1,213,875 | 479,308,035 |
MyCoinStory | LTCUSDT_QUANTO_PERP | -0.168 | 0.00 | 0.06409 | 1,097,992 | 3,523,127 |
Bitget Futures | CMT_LTCUSDT | -0.020 | 0.07 | -0.00340 | 852,058 | 3,654,032 |
Huobi Futures | LTC-USD | -0.048 | 0.03 | 0.02555 | 839,280 | 1,915,169 |
WhiteBIT Futures | LTC_PERP | -0.064 | 0.21 | 0.01000 | 662,318 | 91,193 |
Kraken (Futures) | PI_LTCUSD | 0.000 | 0.09 | -0.07593 | 658,081 | 644,607 |
HitBTC (Derivatives) | LTCUSDT_PERP | 0.113 | 0.07 | -0.01675 | 595,896 | 7,234,150 |
CoinEx (Futures) | LTC-USDT | 0.000 | 0.06 | -0.02864 | 526,475 | 1,921,411 |
MCS | LTCUSDT_QUANTO_PERP | 0.250 | 0.22 | 0.01000 | 232,211 | 8,530 |
WOO Network (Futures) | PERP_LTC_USDT | -0.013 | 0.04 | 0.00072 | 184,480 | 2,008,262 |
AscendEX (BitMax) (Futures) | LTC-PERP | -0.037 | 0.00 | -0.01228 | 164,980 | 285,408 |
Poloniex Futures | LTCUSDTPERP | 0.054 | 0.16 | 0.01000 | 93,450 | 177,918 |
Crypto.com Exchange (Futures) | LTCUSD-PERP | 0.070 | 0.12 | -0.00045 | 83,873 | 261,155 |
Binance (Futures) | LTCBUSD | 0.025 | 0.01 | 0.00252 | 51,351 | 20,141,497 |
BitZ (Futures) | LTC_USDT | 0.000 | 0.14 | 0.00000 | 47,194 | 263,085 |
WOO X (Futures) | PERP_LTC_USDT | 0.021 | 0.04 | 0.00016 | 42,182 | 806,628 |
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 |
BaseFEX | LTCXBT | -0.504 | 0.21 | 0.01000 | 15,392 | 159,341 |
Deribit | LTC_USDC-PERPETUAL | -0.085 | 2.09 | 0.89056 | 7,170 | 11,228 |
Bit.com (Futures) | LTC-USDT-PERPETUAL | 0.011 | 0.42 | 0.00000 | 575 | 33 |
Deepcoin (Derivatives) | LTCUSDT | -0.027 | 0.06 | -0.02285 | 0 | 404,543,812 |
BTCEX (Futures) | LTC-USDT-PERPETUAL | 0.021 | 0.04 | 0.00360 | 0 | 227,231,712 |
BTCC Futures | LTCUSDT | 0.032 | 0.35 | 0.00000 | 0 | 179,336,301 |
CoinTiger (Futures) | LTCUSDT | 0.048 | 0.02 | 0.00376 | 0 | 144,583,579 |
Biki (Futures) | 10 | -0.061 | 0.15 | 0.11109 | 0 | 47,130,982 |
BIT (Futures) | USD-M:LTC-USD-PERPETUAL | 0.063 | 0.07 | 0.01000 | 0 | 14,747,486 |
Fairdesk Derivatives | LTC-USDT-PERP | 0.086 | -1.31 | -0.06950 | 0 | 11,862,101 |
XT.COM (Derivatives) | LTC_USDT | -0.054 | 0.00 | 0.00860 | 0 | 8,205,118 |
XT.COM (Derivatives) | LTC_USD | 0.118 | 0.00 | -0.06640 | 0 | 6,797,211 |
CoinTR Pro (Derivatives) | LTCUSDT | 0.000 | 0.00 | 0.01000 | 0 | 5,507,859 |
ZB (Derivatives) | LTC_USDT | 1.022 | 0.08 | 0.01000 | 0 | 4,969,201 |
Bybit (Futures) | LTCUSD | 0.043 | 0.01 | 0.01000 | 0 | 4,042,782 |
Deepcoin (Derivatives) | LTCUSD | 0.014 | 0.04 | 0.01632 | 0 | 2,170,518 |
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 |
Stormgain Futures | LTC-PERPUSDT | 0.000 | 0.04 | 0.00400 | 0 | 1,294,220 |
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 |
GMO Japan (Futures) | LTC_JPY | 0.000 | 0.39 | 0.00000 | 0 | 644,998 |
HBTC (Futures) | LTC-SWAP | 0.192 | 0.05 | 0.00891 | 0 | 251,917 |
MEXC Global (Futures) | LTC_MUSDT | -0.335 | 94.73 | 0.00000 | 0 | 186,276 |
Bibox (Futures) | 4LTC_USDT | 0.000 | 0.02 | 0.00000 | 0 | 136,856 |
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 | 0.020 | 0.06 | 0.00000 | 0 | 22,718 |
CoinFLEX (Futures) | LTC-USD-SWAP-LIN | 0.769 | 0.63 | 0.00000 | 0 | 3,120 |
Stormgain Futures | LTC-PERPBTC | 0.000 | 2.37 | 0.00400 | 0 | 463 |
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.
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 Global (Futures) | ALT_USDT | -0.417 | 0.42 | 0.10000 | 88,363 | 1,997,970 |
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 | -0.010 | 0.01 | -0.01020 | 1,288,724 | 1,856,212 |
Bitfinex (Futures) | BTCDOMF0:USTF0 | 0.020 | 0.04 | 0.00000 | 305,005 | 756 |
Bitfinex (Futures) | TBTCDOMF0:USTF0 | 0.060 | 0.17 | -0.11774 | 163,844 | 109,181 |
Binance (Futures) | BTCDOMUSDT | 0.123 | 0.02 | 0.01000 | 11,161 | 6,673,503 |
BTSE (Futures) | BDIPFC | -0.143 | 0.30 | 0.00000 | 2,482 | 41,193 |
BTSE (Futures) | BTCDOMPFC | 0.252 | 0.16 | 0.00000 | 0 | 121,499 |
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.