How Hedging Works In Bitcoin Futures (On Binance)
Many traders think they understand hedging strategies in cryptocurrency futures. But the truth is, the concept is as intriguing as the word itself
Published in
6 min readJul 26, 2020
What is a hedge?
A hedge is an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security — Investopedia
I can bet, you’ll only get such skull cracker definitions on hedging even after a whole day of scouring the internet.
You’d be more disappointed if you narrowed the search down to hedging Bitcoin futures.
You’d be forgiven for thinking expert traders and investment advisors fail to give a layman step-by-step explanation on purpose.
I have had the same thoughts and finally decided to research the topic.
This is what I have uncovered in the last six months.
