Hedge Ratio in Financial Formulas

Hedge Ratio represents the proportion of futures contracts needed to offset risk exposure in a corresponding cash market position, minimizing potential losses from price fluctuations. And is denoted by Δ.

Formulas to find Hedge Ratio in Financial

fxHedge RatioGo

List of variables in Financial formulas

fx Hedge Value Go

fx Total Position Value Go

FAQ

What is the Hedge Ratio?

Hedge Ratio represents the proportion of futures contracts needed to offset risk exposure in a corresponding cash market position, minimizing potential losses from price fluctuations.

Can the Hedge Ratio be negative?

{YesorNo}, the Hedge Ratio, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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