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INTRODUCTION Trading is never free from risk. Prices move quickly, and no trader can predict every swing. This is where hedging becomes important. Hedging is the art of protecting yourself against losses by opening positions that balance your exposure. With Bitget’s RWA index perpetual futures, traders can use the index to hedge their portfolios on a daily basis. This helps reduce stress and manage risks while keeping opportunities open. WHAT HEDGING MEANS Hedging is like buying insurance for your trades. It does not guarantee profits, but it reduces the impact of unexpected market moves. For example, if you are heavily invested in one side of the market and worry about sudden reversals, you can open an opposite position with the index to protect yourself. This makes sure that if one trade suffers, the other cushions the impact. WHY THE RWA INDEX IS IDEAL FOR HEDGING The RWA index represents a basket of real world assets rather than a single commodity or currency. This means it offers broader coverage. If you hold positions in one market, such as oil, the index allows you to hedge against related risks while also diversifying your exposure. Its design provides stability, which is exactly what traders look for in a hedge. DAILY HEDGING IN PRACTICE Balancing Commodity Exposure Suppose you hold long positions in energy markets and fear a sudden drop due to policy news. By shorting the RWA index for a day or two, you can limit your losses if prices fall. Protecting Against Currency Moves If you trade global assets, currency swings can affect your balance. The index smooths these effects and can act as a shield. Managing Volatility Daily news often sparks sharp reactions in markets. Using the index for short term hedges keeps your portfolio stable through these turbulent hours. BENEFITS OF DAILY HEDGING WITH THE INDEX Flexibility The perpetual nature of the contracts allows you to open and close hedge positions whenever needed. Cost Efficiency Instead of hedging with multiple single asset contracts, you can use one index contract to cover a wide range of risks. Peace of Mind Daily hedging reduces fear of sudden surprises. This allows traders to focus on strategy rather than panic. AN EXAMPLE IN ACTION Consider a trader who holds long term investments in metals. A major economic report is due tomorrow, and they worry it might cause short term price drops. Instead of selling their main positions, they open a short hedge on the RWA index for one day. If metals fall, the hedge absorbs the hit. If metals rise, the hedge can be closed with a small cost while the main positions benefit. This is the power of daily hedging. RISKS TO BE AWARE OF Hedging is not about chasing profits. It is about reducing risk. Traders must remember not to over hedge or they risk wiping out potential gains. Hedging should be proportional, thoughtful, and in line with the size of the main portfolio. bitgetapp.com/promotion/futu… #BitgetRWAPerp $RWA

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