Hedging Ratio Calculator
Enter spot quantity and contract size (base coins per contract) to estimate how many futures contracts you need to hedge.
Results
Fill in the inputs and click Calculate.
- Hedge Contracts
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Risk disclaimer
This calculator provides estimates for informational purposes only. Basis drift, funding and liquidation can make hedges imperfect.
What is a hedge ratio?
Linear contracts trade in lots; each contract represents a fixed amount of the base asset (its size). A full spot hedge needs roughly Spot Quantity ÷ Contract Size opposing contracts.
This is a simple 1:1 hedge basis and ignores basis drift, funding and slippage adjustments.
How to use
- Enter the spot position (e.g. 1 BTC).
- Enter the base coins per contract (e.g. 0.001).
- Click Calculate to see the number of hedge contracts.
Formula
- Hedge Contracts = Spot Quantity ÷ Contract Size
Example
Holding 1 BTC with 0.001 BTC/contract: short 1,000 contracts.
0.5 BTC with 0.001 size: 500 contracts.
FAQ
Why hedge?
An opposing futures position neutralizes price risk at the cost of giving up upside and paying funding, etc.
Where do I find the size?
The exchange's contract spec lists the base amount per contract (e.g. 0.001 BTC).