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Currency Hedging Cost Calculator

Estimates the all-in cost of hedging a foreign currency exposure with a forward contract, combining the forward-spot differential, the broker bid-ask spread, and a time-prorated holding cost. Useful for a business with foreign receivables or payables comparing whether to hedge, leave open, or use options instead.

Exposure Amount ($)

Current Spot Rate

Forward Rate

Hedging Period

Broker Spread (%)

Currency Advanced

Optimal Currency Hedge Ratio Calculator

Calculates the optimal notional amount of futures contracts needed to hedge a given currency exposure, balancing correlation and variance between spot and futures prices. Ideal for treasurers and portfolio managers reducing FX risk.

Currency Exposure ($)

Spot Rate Variance

Futures Price Variance

Correlation Coefficient

Target Hedge Effectiveness

Key differences

	Currency Hedging Cost Calculator	Optimal Currency Hedge Ratio Calculator
Category	Currency Advanced	Currency Advanced
Inputs required	5	5
Result	Total Hedging Cost ($)	Optimal Hedge Amount ($)
What it does	Estimates the all-in cost of hedging a foreign currency exposure with a forward contract, combining the forward-spot differential, the broker bid-ask spread, and a time-prorated holding cost. Useful for a business with foreign receivables or payables comparing whether to hedge, leave open, or use options instead.	Calculates the optimal notional amount of futures contracts needed to hedge a given currency exposure, balancing correlation and variance between spot and futures prices. Ideal for treasurers and portfolio managers reducing FX risk.