📉🛡️ Trust me, I learned the hard way: futures hedging your spot can save you from mistakes.
You hold 1 BTC spot ($60,000), expecting a dip. To hedge 10% ($6,000), open a $6,000 short futures (0.1 BTC equivalent). Offsets spot drawdown.
Cost? Funding rates. A $6,000 short at 0.01% per 8 hours is $0.60 every 8 hours ($1.80 daily).
Hedge for short-term uncertainty, protecting gains, or avoiding spot sales. It's a temporary risk tool.
When NOT to hedge: Market strongly bullish, minor expected dips, or small spot for fees. Avoid FOMO hedging; costs eat small protections.
#FuturesTrading #CryptoHedging #RiskManagement #BinanceSquare
You hold 1 BTC spot ($60,000), expecting a dip. To hedge 10% ($6,000), open a $6,000 short futures (0.1 BTC equivalent). Offsets spot drawdown.
Cost? Funding rates. A $6,000 short at 0.01% per 8 hours is $0.60 every 8 hours ($1.80 daily).
Hedge for short-term uncertainty, protecting gains, or avoiding spot sales. It's a temporary risk tool.
When NOT to hedge: Market strongly bullish, minor expected dips, or small spot for fees. Avoid FOMO hedging; costs eat small protections.
#FuturesTrading #CryptoHedging #RiskManagement #BinanceSquare