# How to Hedge Ethereum 24/7 > Use a short ETH perpetual to reduce Ethereum price exposure while retaining spot or staked ETH, with separate plans for collateral, staking rewards, and token tracking risk. - Canonical: https://www.liquid.trade/learn/how-to-hedge-ethereum-24-7 - Published: 2026-09-18 - Category: Strategy - Tags: Ethereum, ETH, Hedging, Perpetuals, 24/7 Trading --- **The direct answer:** Short an [ETH perpetual on Liquid](https://app.liquid.trade/trade/ETH) against ETH you already hold. Short half the ETH amount for a 50% hedge, or the same amount for a full price hedge. You can keep your ETH in a wallet or staked while the short offsets part or all of a price decline. The short also loses during an ETH rally, reducing your upside. Keep trading collateral available separately from any staked funds. ## How do I calculate an Ethereum hedge? Start with **ETH held × hedge percentage**. If you hold a liquid staking token, use the amount of ETH it represents; the token count may be different. Suppose you hold **10 ETH** at a hypothetical **$3,000 per ETH**. The exposure is $30,000. A 60% hedge shorts 6 ETH, or $18,000 of initial notional; a full hedge shorts 10 ETH. | ETH price move | Spot holding PnL | 60% short hedge PnL | Combined PnL | | --- | --- | --- | --- | | Falls to $2,700 | −$3,000 | +$1,800 | −$1,200 | | Rises to $3,300 | +$3,000 | −$1,800 | +$1,200 | A matching 10 ETH short would instead gain $3,000 on the decline or lose $3,000 on the rally, approximately offsetting the holding in either direction. These examples exclude funding, fees, slippage, staking rewards, and tracking differences, and assume the short remains open. ## Can I hedge staked ETH without unstaking it? Yes. Your ETH can stay staked while a separate short reduces its price exposure. The staking and withdrawal process continues as usual. [Ethereum's staking documentation](https://ethereum.org/staking/) explains the risks that a price hedge does not cover, including slashing, provider failures, and smart contract losses. For a liquid staking token, check its current ETH conversion rate and market price. Some token balances grow with rewards; others represent more ETH per token over time. If the token trades at a discount to ETH, the short will not cover that discount widening. Recheck the hedge as staking rewards increase your ETH balance. ## Why does the short need separate collateral? An ETH rally creates losses on the short even while your holding gains value. Staked ETH cannot automatically cover those losses and may take time to withdraw. Fund the short for a rally before opening it. If the short is liquidated while you wait for an unstaking withdrawal, it no longer offsets later ETH declines. More collateral gives the same short more room to absorb a rally. Check its estimated liquidation price and how [cross or isolated margin](/learn/cross-margin-vs-isolated-margin) affects the funds at risk. ## What does an ETH hedge cost? Track trading fees, spread, slippage, and funding separately from staking rewards. Subtracting those costs from rewards gives a more useful picture than the quoted staking yield alone. [Hyperliquid's funding documentation](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/funding) explains that shorts receive positive funding and pay negative funding. Rates can reverse, so staking plus a short does not guarantee a dollar yield. The perp and your ETH holding can also trade at different prices. That gap, called basis, can change the combined result even when the coin amounts match. ## How do I hedge Ethereum on Liquid at night or on weekends? Liquid's ETH market is designed for 24/7 access, including weekends. Access depends on your location and market availability; outages, thin liquidity, and delayed transfers can still interrupt a trade. 1. Add up your ETH, including the ETH represented by staking tokens. Count each holding once. 2. Choose the percentage to hedge and calculate the short quantity. 3. Open [ETH on Liquid](https://app.liquid.trade/trade/ETH), choose short, and enter the amount. 4. Set aside margin, then check the price, fees, funding, and liquidation level. 5. Set alerts and review the hedge when rewards, withdrawals, or purchases change your balance. 6. Reduce the short when you sell ETH, or close it when you want the full price exposure back. A stop can close the short at a different price from its trigger, leaving the ETH unhedged. Plan that outcome alongside your intended exit. For the basic trade mechanics, see [How to Short Crypto](/learn/how-to-short-crypto). [Explore Ethereum →](/markets/ethereum) · [Learn about funding →](/learn/what-are-funding-rates)