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04
offset a concentrated holding
When one name dominates the portfolio, a partial short reduces idiosyncratic drawdown without forcing a sale.
what it protects
the largest single position
instrument
short on the concentrated asset's registered market
conditions
- one asset exceeds 35% of priced portfolio value
collateral
20% initial margin, capped at 80% coverage by default
costs
- opening fee
- ongoing funding
- opportunity cost if the name rallies
funding exposure
single-name funding tends to be more volatile than index funding
liquidation risk
a squeeze in the concentrated name is the primary liquidation scenario
basis risk
minimal, since the hedge references the same asset
worked calculation
connect a wallet for live values
concentration
HHI = Σ (assetValue ÷ total)²
hedge notional
top position value × min(protection %, 80%)
no live values yet — the calculation runs against real balances only.