Forex Hedge Ratio Calculator
Calculate how many lots to open as a hedge. Formula: Hedge lots = Existing lots × Hedge percentage. Enter your current position size and desired hedge ratio for instant results.
Current position size in lots (e.g. 1 = 1 standard lot)
How much of the position to hedge (e.g. 50 = half)
Open 0.50 lots in the opposite direction to hedge 50% of your 1 lot position
Formula: Hedge lots = Existing lots × (Hedge % / 100). This is a simple ratio; it does not account for floating P/L or pip value. For full hedging use 100%; for partial hedging use a lower percentage.
What is a forex hedge ratio?
A hedge ratio tells you how much of an opposite position to open to offset risk on an existing forex position. If you have 1 lot long and want to hedge 50%, you open 0.5 lots short. The formula is: Hedge lots = Existing lots × (Hedge percentage / 100). This calculator uses that relationship for instant results.
How to use this calculator
- Existing lots: Enter your current position size in lots (e.g. 1 for one standard lot).
- Hedge percentage: Enter the share of the position you want to hedge (e.g. 50 for 50%, 100 for full hedge).
- The result is the number of lots to open in the opposite direction to achieve that hedge ratio.
Why use our forex hedge ratio calculator?
All calculations run in your browser—no server round-trip—so you get instant results. Use it to size hedge orders quickly, plan partial hedges, or check the lot size before placing an opposite trade. The formula is exact for the simple ratio; more advanced methods may adjust for floating P/L or correlation—this tool gives you the baseline hedge lot size.
Frequently asked questions
What does 100% hedge mean?
A 100% hedge means you open the same size in the opposite direction. For 1 lot long, you open 1 lot short. That fully offsets the position (ignoring spread and swap). Lower percentages give a partial hedge.
Does this account for floating profit or loss?
No. This is a simple ratio: Hedge lots = Existing lots × Hedge %. It does not adjust for current P/L. For that, you would need to factor in notional value or pip exposure; this tool is for the basic lot-size relationship.
Can I use this for micro or mini lots?
Yes. Enter your position in the same unit you trade (e.g. 0.1 for a micro lot, 1 for a standard lot). The result is in the same unit. Round to your broker's allowed lot increment when placing the order.
Disclaimer: This calculator is for educational and informational purposes only. Hedge sizing does not guarantee risk elimination. Trading forex involves risk; manage position size and consult a qualified advisor as needed.
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