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Risk Management

What is Hedging?

Reviewed by the ONCHAIN TRADE DOJO team · Updated March 12, 2026

Opening a counter-position (e.g., going short while holding spot) to protect against falling prices.

Related terms

Capital AllocationKelly Criterion (Position Sizing)Leverage & LiquidationLiquidation CascadesRisk/Reward Ratio (RRR)
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