@GCar, I really don't understand the mechanism...

@GCar, I really don't understand the mechanism that@BabaRoga_space is talking about. Buying tends to place upward pressure on price as selling places downward pressure. The so-called "market impact", the amount the price moves as a result of your trading, is comprised of a transitory and a more persistent component. The transitory bit can be ignored (ie, the price snaps back to what it otherwise would have been without your intervention), but the more persistent component could be exploited in theory.

As for hedging, you usually hedge one thing with another thing. For example, you buy all the components of LIT and short LIT, or you buy GXY and short PLS... you get a bet on the merits of one vs the other but with a lot less of the common movement in the underlying commodity price or battery materials sector. You might have an options strategy that you delta hedge with the underlying stock, you might be a debt investor that's long the company's loans or bonds and short the head stock as a rough hedge for default risk. If you're just using the head stock, you're not hedging, you're just trading (imho).