What Is Hedging?

Opening a position that offsets risk in another holding. A common crypto hedge is shorting BTC perpetuals against a spot BTC portfolio during uncertain periods, locking in dollar value without selling the underlying coins.

Where You Will Meet This Term

You will run into hedging constantly on any futures exchange, from the order panel to the position dashboard. If you are still building your foundation, our guides on leverage, liquidation and risk management connect the vocabulary into an actual trading process, and the full glossary covers every other term you will encounter.