Hedge Ratio Calculator

What does the hedge ratio measure?

This calculator measures the value of a hedge position relative to the exposure you want to offset.

How to use this tool

Hedge ratio = hedge position value ÷ total exposure value × 100. Use values in the same currency at the same valuation date, with exposure greater than zero.

Example

A $60,000 hedge against $100,000 of exposure gives a value-based hedge ratio of 60%.

Understanding your result

Equal values do not guarantee equal risk. This simple ratio does not account for derivatives’ sensitivity, correlation, maturity, or basis risk. It does not calculate an optimal hedge or recommend a position.