🛡️ Hedge Ratio Calculator
Calculate what percentage of your position is protected (hedged) against risk, using the value of your hedge relative to total exposure.
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What is a hedge ratio?
The hedge ratio compares the value of a position protected by a hedge (such as a futures or options contract) to the total value of the exposure being managed.
The formula
Hedge Ratio = Value of Hedge Position / Total Value of Exposure. A ratio of 1.0 (or 100%) means the position is fully hedged; a ratio below 1.0 means only part of the exposure is covered, leaving some risk unhedged.
This calculator is for general risk-management education, not investment advice.
Last reviewed August 2026