Current ETH price: $2,579.88 (+4.72%)
24h Volume: 981M USDT | Range: $2,453 – $2,587
🔍 Why hedge?
ETH volatility is rising! Hedging reduces risks while maintaining profit potential.
📌 Simple strategy on Binance futures:
1️⃣ Opening positions:
- Spot (bought ETH): Hold 1 ETH in spot ($2,580).
- Futures (hedge): Open a short position on ETHUSDT with leverage of 3-5x (volume = 1 ETH).
2️⃣ Setting TP/SL:
- Take Profit: Close futures at +5-7% from current price.
- Stop Loss: Automatic SL at $2,650 (risk +2.7%).
3️⃣ Balancing:
- If ETH rises — profit in spot offsets the loss in futures.
- If ETH drops — profit from short covers the loss in spot.
📊 Example calculation (price drop of 10%):
- Spot: -$258 (loss).
- Futures: +$258 (profit).
Outcome: 0 (risk neutralized).
⚡ Important:
- Use cross-margin for flexibility.
- Monitor EMA(50) ($2,087) — key level for rebalancing.
💬
Hedging is insurance. Don’t avoid risks, but manage them!