# Perpetual Futures Hedging ⎊ Area ⎊ Resource 2

---

## What is the Hedge of Perpetual Futures Hedging?

: This involves using perpetual contracts to offset the risk associated with a primary asset holding, such as spot cryptocurrency or an options portfolio. The absence of a fixed expiry date simplifies duration management compared to traditional futures. Effective deployment requires constant monitoring of the funding rate to avoid unexpected costs.

## What is the Position of Perpetual Futures Hedging?

: Establishing a perpetual position opposite to an existing exposure neutralizes the net market risk profile. For instance, a long spot holding is hedged with a short perpetual position to lock in value. Maintaining the correct notional size correlation between the two legs is operationally intensive.

## What is the Strategy of Perpetual Futures Hedging?

: Basis trading, exploiting the spread between the perpetual contract and the spot price, is a common application for generating yield while hedging. This strategy relies on the funding rate to compensate for the capital tied up in the paired positions. Successful implementation demands high execution quality across both legs of the trade.


---

## [Portfolio Margin Architecture](https://term.greeks.live/term/portfolio-margin-architecture/)

## [Synthetic Gas Fee Futures](https://term.greeks.live/term/synthetic-gas-fee-futures/)

## [Gas Fee Futures Contracts](https://term.greeks.live/term/gas-fee-futures-contracts/)

## [Delta Exposure](https://term.greeks.live/term/delta-exposure/)

## [Hedging Cost Calculation](https://term.greeks.live/term/hedging-cost-calculation/)

## [Delta Hedging Stress](https://term.greeks.live/term/delta-hedging-stress/)

## [Liquidity Pool Management](https://term.greeks.live/term/liquidity-pool-management/)

## [Futures Price](https://term.greeks.live/term/futures-price/)

## [Perpetual Swaps Funding Rates](https://term.greeks.live/term/perpetual-swaps-funding-rates/)

## [Delta Gamma Calculations](https://term.greeks.live/term/delta-gamma-calculations/)

## [Gas Fee Futures](https://term.greeks.live/term/gas-fee-futures/)

## [Perpetual Funding Rates](https://term.greeks.live/term/perpetual-funding-rates/)

## [Perpetual Futures Hedging](https://term.greeks.live/term/perpetual-futures-hedging/)

## [Delta Hedging Friction](https://term.greeks.live/term/delta-hedging-friction/)

## [Continuous Delta Hedging](https://term.greeks.live/term/continuous-delta-hedging/)

## [Trustless Environment](https://term.greeks.live/term/trustless-environment/)

---

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---

**Original URL:** https://term.greeks.live/area/perpetual-futures-hedging/resource/2/