MONEY GLOBE XFutures Pro · Lesson 4
Hedging a portfolio with futures
Protection without selling
Professional - Gold & Platinum
In this lesson
Calculate a hedge size using beta or a hedge ratio, and understand the costs and trade-offs of hedging.
Key takeaways
- Full hedge size ≈ portfolio value × beta (for stock portfolios with index futures).
- A partial hedge (e.g. 50%) reduces both losses and gains in proportion.
- Costs: funding/basis, margin requirements, and lost upside.
- Decide why, how much and when you'll remove the hedge before placing it.
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Educational information only - not financial advice.