What is Coincall's DDH (Dynamic Delta Hedge)?
Refined Dynamic Delta Hedging to minimize hedging costs
Coincall's Dynamic Delta Hedging (DDH) is an automated risk management tool that helps users to manage risk from their options positions by using perpetual futures to dynamically hedge delta exposure when it exceeds a defined threshold. With DDH, traders can keep their account’s Delta exposure within a predefined range, thereby managing overall portfolio risk more effectively and reducing hedging costs.
Meet the Requirements
To enable DDH, your account must have:
- Total Net Equity ≥ 1,000 USDT
How to Access the DDH Feature
On Web:
1.0 How to Enable Auto DDH on Coincall
- Go to the Trading Page, navigate to the trading interface on Coincall.
- Click on the “DDH” Tab, you'll find it on the right side of the “Open Orders” tab.
- Select the Asset You Wish to Hedge, choose from supported tokens (e.g., BTC, ETH, SOL).
- Toggle the “Auto DDH” Button, this will open the setup process for automatic delta hedging.
- Ensure Your Account Meets Activation Requirements, your total equity must be ≥ 1,000 USDT (or as configured).
- Click the “Enable Auto DDH” Button, this begins the activation process.
- Review the Disclaimer, read the terms carefully to understand how DDH works.
- Click “Activate Now” to Confirm. Once agreed, the DDH feature will be enabled for the selected asset.
1.2 DDH Thresholds
These are the rules you set to tell the system when to start and stop delta hedging your portfolio. You configure 5 values to control how your delta exposure is managed.
How It Works (Step-by-Step)
- Live Delta Value
- At the top of the settings page, you’ll see your real-time Delta, which updates every few seconds (max 5s).
- This Delta reflects your portfolio’s exposure to price changes, the higher the Delta, the more price-sensitive your position is.
- Set the Main Thresholds You define:
Parameter | Descriptions |
Upper Limit | When delta is too high (e.g. +2), DDH will trigger to hedge short. |
Lower Limit | When delta is too low (e.g. -2), DDH will trigger to hedge long. |
These are the outer boundaries. If your Delta moves beyond them, the system starts hedging.
- Set the Target Value
- This is your ideal delta, often 0 (fully neutral).
- The goal of the hedging action is to bring delta back toward this value.
- Define the Tolerable Range Around the Target
Parameter | Description |
Upper Tolerable | The stop point of a short hedge (e.g., 0.1) |
Lower Tolerable | The stop point of a long hedge (e.g., -0.1) |
Once the delta is brought back into this green zone, the system stops hedging and cancels any pending orders.
- Key Points to Remember
- You don’t need to use symmetrical values — customize them based on your own risk appetite
- The system works automatically and uses perpetual futures to neutralize risk
- No need to manually close positions — DDH does it for you
- If delta enters the "red zone" (beyond limits) → action is taken If it re-enters "green zone" (within tolerance) → action stops
1.3 DDH Order Settings
What is the DDH Order Setting?
After setting your delta thresholds, you also need to tell the system how it should place hedging orders once DDH is triggered. This part is about how aggressively or cautiously the system should execute those hedges.
What Is Being Used to Hedge?
- For now, Coincall uses perpetual futures contracts to carry out delta hedging.
- So whenever your delta crosses a threshold, the platform will use perps to buy or sell in order to balance your exposure.
Order Pricing Mode: Market Order Mode
This is the simplified order placement mode within the system. All hedging operations are executed using market orders to ensure the fastest possible execution.
How it works:
- All buy and sell orders are placed directly as market orders.
- The goal is to ensure immediate execution and complete the hedging process promptly.
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