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 — this is the core mechanic behind hedging spot exposure with futures. It works because Crypto Futures on Pluang are USDT-margined contracts that let you take a short position on an asset without selling the coins already sitting in your spot wallet, so you keep long-term ownership while reducing short-term downside. A hedge does not have to cover your entire position — sizing a short to roughly 30%, 50%, or 100% of your spot holdings' notional value determines how much downside gets neutralized, with a full hedge offsetting losses almost completely and a partial hedge leaving room for upside. Hedging is not free: opening and holding a short position requires margin, ongoing funding rate payments add to or subtract from the cost over time, and basis risk between futures and spot prices means a hedge reduces volatility rather than eliminating risk entirely.

• Basic mechanics with an example: If you hold BTC in your Pluang spot wallet worth 50,000,000 IDR and expect a short-term price drop, you can open a short BTC Crypto Futures position with a similar notional value. If BTC falls 10%, your spot holdings lose roughly 5,000,000 IDR in value, but the short futures position gains a comparable amount before fees and funding, offsetting most of the loss.
• Hedge ratio and sizing: A full (delta-neutral) hedge matches the notional value of your short futures position to your spot holdings. Most traders choose a partial hedge instead — for example, hedging 50% of spot exposure — to retain some upside participation if the market moves in their favor rather than against it.
• Isolated vs. cross margin: Pluang offers both isolated and cross margin modes for futures. Isolated margin is the safer choice for a hedge because it caps the maximum loss on the hedge position to the margin you allocate to it, so a large drawdown in your futures account cannot spill over into the rest of your portfolio.
• Funding rate cost: Holding a short position on Pluang has an ongoing cost. When funding is positive (futures price above spot), short holders receive funding, which benefits the hedge. When funding is negative, short holders pay funding, which adds an ongoing cost — factor this in for longer-duration hedges.
• Perpetual contracts only: All Crypto Futures contracts on Pluang are perpetual — there are no expiry-dated contracts. A perpetual contract has no fixed end date, so to hedge for a fixed period you hold the perpetual hedge for that period and close it when you're done. Funding is exchanged every 8 hours while the position is open, so factor it into the cost of the hedge.
• Basis risk and monitoring: Even with a hedge in place, your net position is not entirely risk-free. If the gap between the futures price and spot price widens or narrows unexpectedly, the hedge may not fully neutralize losses — check your positions in the Pluang app regularly rather than setting a hedge and forgetting it.

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 price level you consider a key resistance, but hedging via futures protects against directional price moves rather than targeting a specific price threshold. If your goal is protection at an exact price point, options-style products suit that better than futures, since futures gains and losses scale continuously with the underlying price rather than triggering at a set level.

Q: Does Pluang offer expiry futures contracts suitable for hedging a fixed time horizon?
No — all Crypto Futures contracts on Pluang are perpetual, with no expiry-dated contracts. To hedge over a defined period, such as a month or a quarter, you hold the perpetual hedge for that period and close it when you're done. Keep in mind that funding is exchanged every 8 hours while the position is open, so it adds to or offsets the cost of the hedge for as long as you hold it.

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. This separation lets you monitor how your hedge is performing against your spot holdings independently, rather than seeing a single blended number that could obscure how well the hedge is working.

Q: How much of my portfolio should I hedge?
There is no single correct ratio — match it to your risk tolerance and market view: a 100% hedge neutralizes most price risk but also removes most upside, while a 30–50% partial hedge cushions losses while leaving room to benefit if prices rise. Many traders start with a partial hedge and adjust the ratio as market conditions or their conviction changes.