Hedging

Hedging opens a second position to offset the risk of a first one, which matters when you want to keep a spot holding through a rough period without selling it. Shorting a perpetual against that spot position is the most direct version of this on Hyperliquid. These guides cover how to size a hedge so it actually offsets the risk you're worried about and how pairs trading extends the same idea to two correlated assets. Start with how shorting works before you build a hedge from it, since a hedge is just a short aimed at protection instead of profit, and sizing it wrong offsets less risk than you think.

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