Using Pluang Futures to Hedge a Spot Crypto Portfolio

You can hedge a spot crypto portfolio on Pluang by opening a short Crypto Futures position that moves opposite to your spot holdings, so a loss on one side is offset by a gain on the other. Crypto Futures on Pluang are USDT-margined contracts that let you take a short position without selling the coins in your spot wallet. Hedging is not free — it requires margin, funding rate payments, and does not eliminate risk entirely.

How hedging works on Pluang:

• Basic mechanics (example): If you hold BTC worth 50,000,000 IDR in your spot wallet and expect a short-term drop, open a short BTC Crypto Futures position of similar notional value. If BTC falls 10%, your spot loses roughly 5,000,000 IDR, but the short futures position gains a comparable amount before fees and funding.
• Hedge ratio: A full (delta-neutral) hedge matches the notional value of your short futures position to your spot holdings. Most traders choose a partial hedge — e.g. 50% of spot exposure — to retain some upside if the market moves in their favour.
• Isolated margin recommended: Isolated margin caps losses on the hedge to the margin you allocate, preventing drawdowns from spilling into the rest of your portfolio. Cross margin uses your entire futures balance instead.
• Funding rate cost: When funding is positive, short holders receive funding — a benefit to the hedge. When funding is negative, short holders pay funding — an ongoing cost for longer-duration hedges.
• Perpetual vs. expiry contracts: Perpetual futures have no fixed end date but carry recurring funding payments; expiry futures settle on a fixed date, suiting a hedge with a known time horizon.
• Basis risk: Hedges are not perfectly risk-free — if the gap between futures and spot price shifts unexpectedly, the hedge may not fully neutralise losses. Monitor your positions regularly in the Pluang app.

Related questions:

Q: Can I hedge my Pluang spot crypto holdings against a specific price level?
You can set a short futures entry near a key resistance level, but futures hedging protects against directional price moves rather than targeting a specific price. Options-style products suit exact price-point protection better.

Q: Does Pluang offer expiry futures contracts suitable for hedging a fixed time horizon?
Yes — Pluang offers both perpetual and expiry futures contracts. Expiry contracts suit a hedge over a defined period, such as a month or quarter, without managing ongoing funding rate exposure.

Q: Will my Pluang spot crypto holdings and futures positions be shown separately in the app?
Yes — your spot crypto portfolio and futures positions are displayed in separate sections of the Pluang app, each with its own balance, PnL, and history, so you can monitor your hedge independently.

Q: How much of my portfolio should I hedge?
There is no single correct ratio. A 100% hedge neutralises most price risk but removes most upside, while a 30–50% partial hedge cushions losses while leaving room to benefit if prices rise.