Learn how to use perpetual futures to hedge spot holdings, lock in profits, and reduce portfolio risk. Practical hedging strategies for on-chain traders on Hyperliquid.
Hedging is the practice of opening an opposing position to offset potential losses in an existing holding. In crypto, the most common hedge is shorting a perpetual futures contract against a spot position.
Lock in profits from a spot position without selling the asset. Useful if you want to keep the token for governance, staking, or airdrops.
Limit losses during bearish periods. Your short gains offset your spot losses, reducing the impact of a market downturn.
A hedge can be added or removed at any time. Unlike selling spot, you maintain your position and can lift the hedge when sentiment improves.
The simplest hedge: you hold a token on spot and open a short perpetual position of equal size. This creates a market-neutral position.
Choose the spot asset you want to protect. For example, you hold 1 ETH worth $3,000.
Short $3,000 of ETH on perpetuals. Use low leverage (1-2x) to minimize liquidation risk.
If ETH drops 10%: your spot loses $300, your short gains ~$300. If ETH rises 10%: your spot gains $300, your short loses ~$300. Net result: approximately flat.
When you are ready to be directional again, close the short. Your spot position remains intact.
Full hedging eliminates both downside and upside. Partial hedging lets you retain some exposure while reducing risk.
| Strategy | Hedge Ratio | Use Case |
|---|---|---|
| Light Hedge | 25% | Slightly bullish but want some protection. Retains 75% upside exposure. |
| Half Hedge | 50% | Uncertain direction. Reduces risk by half while keeping half the upside. |
| Heavy Hedge | 75% | Leaning bearish but do not want to sell spot. Minimal upside exposure. |
| Full Hedge | 100% | Completely neutral. Want to hold the token (for staking, airdrops) but eliminate price risk. |
Example: You hold $10,000 of HYPE and want a half hedge. Short $5,000 of HYPE on perps. If HYPE drops 20%, your spot loses $2,000 but your short gains $1,000 — net loss is $1,000 instead of $2,000.
Hedge with perps on Dexly
Instead of hedging individual tokens, you can hedge at the portfolio level for more efficient capital use.
If most of your portfolio is correlated with BTC, shorting BTC perps provides a broad market hedge. This is simpler than hedging each asset individually.
Increase your hedge ratio before known risk events — protocol upgrades, regulatory announcements, or token unlocks. Remove the hedge after the event passes.
As your portfolio grows in value, increase your short size to maintain your target hedge ratio. Rebalance weekly or when the portfolio moves significantly.
If you hold multiple DeFi tokens, a single short on a DeFi index or the sector leader can provide broad protection with one position.
Hedging has a cost. Understanding these trade-offs helps you decide when hedging is worth it.
Dexly makes hedging straightforward — trade both spot and perpetuals from the same interface. View your combined position and manage your hedge ratio in real-time.
Perps, spot, copy & prediction markets in one fast, non-custodial app. Get Dexly on iOS & Android and start in seconds.
Risk Warning: Trading perpetual futures involves significant risk of loss. Only trade with capital you can afford to lose. Dexly is a non-custodial interface; you are responsible for your own funds and trading decisions.
Hedge with perps on Dexly
