Hedge Ratio Calculator
Compute hedge ratio from position size and hedge size. Ratio = Hedge size / Position size.
Use the Hedge Ratio Calculator
Enter position size and hedge size (same units). Hedge ratio is calculated.
Position and hedge
Size of position and size of hedge (units or notional).
Results
Hedge ratio
1.0000
Hedge ratio = Hedge size / Position size. Used with delta or beta for derivative hedging.
How this calculator works
Hedge ratio = Hedge size / Position size. Enter both in the same units.
How to interpret your results
A ratio of 1 means hedge size equals position size. In practice you often multiply by delta or beta.
FAQs
What is hedge ratio?▾
Hedge size divided by position size. Often combined with delta or beta to size derivative hedges.
Which inputs matter most?▾
Both position size and hedge size. Units should match.
When would I use this?▾
To express how much hedge you have per unit of exposure.
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