Example in hedging:
You have $100,000 spot BTC
You enter with $10,000 x10 leverage short
You have a 100% hedge ratio in this way, protecting both sides during very uncertain times. If for any case you lose your 10k because of a 10% increase, do your calculation on the spot bag. The spot paid it back, you gained 10k and lost 10k, you just played it perfect and have all the time to decide what’s your next step.
