What is Hedging?​​

Hedging involves opening a ​​COIN-M 1x short position​​ (coin-backed) to sell crypto while preserving USD-denominated value, thereby safeguarding USD-based assets. For futures grid hedging, profits are generated through grid interval fluctuations:

​​Price drops​​: Earn more crypto via buying at lower intervals.

​​Price surges​​: Sell crypto at higher prices.

Simultaneously, you earn ​​grid volatility arbitrage profits​​ and ​​funding rate revenue​​. With 1x leverage posing ​​no liquidation risk​​, this strategy ensures stable value preservation and dual-profit potential.
Its grid mechanism aligns with standard futures grids.

​​Key Features of Hedging​​

1)Profit in Bull & Bear Markets​​

​​Bearish​​: Earn crypto as prices drop.

​​Bullish​​: Sell crypto at higher prices.

2)Grid Volatility Arbitrage​​:Profit from price fluctuations within grid intervals.

3)Funding Rate Revenue​​:Earn fees from maintaining short positions.

4)​​Zero Liquidation Risk​​:1x leverage eliminates bankruptcy fears.

​​Applicable Scenarios​​

​​1. Bearish: Earn Crypto​​

​​Use Case​​: Anticipate a price peak or downturn.
​​Example​​:

• Open a BTC hedging grid at 100,000 USD.
• As prices drop, the COIN-M 1x short position automatically accumulates more BTC.
• Earn additional profits from grid arbitrage and funding rates.

2. Bullish: Sell at Higher Prices

​​Use Case​​: Avoid selling too early during rallies.
​​Example​​:

• Open a hedging grid at 100,000 USD with a 90,000–150,000 USD range.
• Sell BTC gradually, achieving an average exit price of ~130,000 USD.
• Earn profits from grid arbitrage and funding rates.

​​How to Use Hedging​​

Navigate to ​​COIN-M Futures Grids​​ → Select ​​Hedging​​.

Set parameters (e.g., price range, investment amount) based on your market outlook.

​​FAQ​​

​​Q: How does Hedging differ from standard contract grids?​​
Hedging uses ​​COIN-M 1x short contracts​​ as its core mechanism, sharing identical fees and operational logic with standard grids.

​​Q: How does Hedging differ from Arbitrage?​​

​​Arbitrage​​: Short perpetual futures while holding equivalent spot positions to profit solely from funding rates.

​​Hedging​​: Combines COIN-M 1x shorts with grid trading, enabling profits from price drops (crypto gains), surges (USD gains), and funding rates.

​​Q: Is Hedging better for bearish or bullish markets?​​
​​Both​​.

​​Bull Markets​​: Use Hedging to lock in gains as prices peak or exit gradually.

Bear Markets​​: Profit from falling prices.

Sideways Markets​​: Earn funding rates and grid arbitrage.

​​Q: Can Hedging grids liquidate?​​
No. The 1x short position ensures ​​zero liquidation risk​​.

​​Q: Do I lose money if prices keep rising?​​
Your USD-denominated balance increases as prices rise, but profits may lag behind holding/bullish strategies.

For sustained rallies, consider ​​futures grid longs​​ for higher returns.