Hedge Grid Calculator
Direct answer
The hedge grid calculator turns a spot position value and a hedge ratio into the required short notional and a -3% to +3% scenario table of spot, hedge and net moves; hedging cuts downside but gives up some upside.
The hedge grid calculator sizes a short hedge for a spot position: enter position value and hedge ratio to get required short notional and a -3%~+3% scenario table of spot, hedge and net moves.
Hedge Grid Calculator
Result
All figures follow the assumptions on this page and are for reference only.
- Hedge notional
- —
- Unhedged loss @ -1%
- —
- Hedged loss @ -1%
- —
Scenarios / details
| Move | Spot PnL | Hedge PnL | Net |
|---|
Key data & facts
- Example spot
- 1000 USDT
- Hedge ratio
- 50%
- Required short
- 1000 × 50% = 500 USDT
- Scenario test
- a 1% drop costs about half
What is the Hedge Grid Calculator?
Hedging reduces downside but gives up upside (the hedge cost). 0% = unhedged, 100% = fully hedged.
How to use
- Enter the model parameters.
- Calculate to see results.
- Cross-check the worst case with risk tools.
Model notes
Estimated with page parameters under a simplified grid model Capital per grid and fees follow the page assumptions
Live execution must include exchange rules and slippage.
Example
1000 USDT spot × 50% = 500 USDT short notional; a 1% drop now costs the portfolio about half.
Practical tips
- Hedging is a risk tool, not a return generator.
- Watch funding fees and liquidation on the short leg.
FAQ
Are results guaranteed?
No. They come from simplified models under the page assumptions and do not promise future returns.
Does this tool predict price direction?
No. It only computes outcomes for the parameters you enter.
How should I manage the added risk?
Use the risk, drawdown and liquidation tools before starting, and trade at your own risk.
Sources & references
- What Is a Futures Contract?Investopedia
- What Is Financial Leverage?Investopedia