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Analysis
Analysis

FX Hedging Calculator

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CURRENCY HEDGER • FX RISK MANAGEMENT

FX Hedging Calculator

Model the potential impact of hedging a foreign currency exposure and compare a hedged position with an unhedged position under different exchange-rate scenarios.

HEDGE PARAMETERS
FC
Total foreign currency amount exposed to FX movements.
Home currency per 1 unit of foreign currency.
Illustrative rate assumed to be available for the hedge.
75%
0% — Unhedged 100% — Fully Hedged
Enter a hypothetical settlement rate to model the potential outcome.
HEDGE ANALYSIS
Potential Hedge Benefit — Based on the scenario entered.
TOTAL EXPOSURE —
HEDGED EXPOSURE —
UNHEDGED EXPOSURE —
HEDGE RATIO —
COST / VALUE COMPARISON
Unhedged Position —
Hedged Portion —
Unhedged Portion —
Blended Hedged Position —
Potential Benefit —
EFFECTIVE BLENDED RATE —
FORWARD RATE —
SCENARIO RATE —
EXPOSURE BREAKDOWN

How much of your FX exposure is protected?

A hedge ratio determines the percentage of the exposure covered by the assumed forward contract. The remaining exposure continues to be affected by the future market rate.

75% HEDGED
25% OPEN
UNDERSTANDING THE RESULT

Hedging is about managing uncertainty — not predicting where the market will go.

A partial FX hedge divides your exposure between a protected portion and an amount that remains exposed to future exchange-rate movements.

The calculator applies the assumed forward rate to the hedged portion and the future scenario rate to the unhedged portion. This produces an illustrative blended exchange rate for the overall exposure.

The result is designed to help you understand how different hedge ratios can affect your currency exposure. It should not be interpreted as a forecast of future exchange rates or a recommendation to enter into a particular transaction.

CURRENCY HEDGER • FX RISK MANAGEMENT

Have a real FX exposure to manage?

Use the calculator to explore different scenarios, then talk to a Currency Hedger FX specialist about your actual currency requirements.

TALK TO AN FX SPECIALIST
Important information

This calculator is provided for illustrative and educational purposes only. It uses the assumptions and figures entered by the user and does not constitute financial, investment, tax, accounting or legal advice. Actual FX transactions may involve different rates, spreads, fees, credit requirements, settlement terms and market conditions. A future exchange rate cannot be predicted from this calculator. Speak with an appropriately qualified FX professional before making a hedging decision.