Hedging in crypto trading Hedging is a strategy to protect | SVIATOSLAV GUSEV

Hedging in crypto trading

Hedging is a strategy to protect investments from losses in the market. The idea is that you open a position in the opposite direction from the main one.

For example, you hold TON for the long term on the spot, but open a short on the futures to protect your investment when it starts to fall in value.

Often use hedging when you have earned on an upside and don't want to lose on a correction, and open a short position in futures to protect your earnings.

It is a useful tool, but it must be used with caution — try trading first, and then you can try it.