Hedge Tech in 60 seconds
You pick a stock, enter your trade size, and Hedge Tech tells you exactly how many Nifty or Bank Nifty futures contracts to short — so market-wide crashes hurt less. This guide walks you through every screen.
Enter your trade
Go to Analyze Trade — fill in 4 fields
Stock Symbol
Type 3+ letters — suggestions appear from our 35-stock NSE list. Click to select.
Quantity (shares)
How many shares you bought or sold
Entry Price (₹)
Your actual buy/sell price, not current market
Direction
LONG
You bought the stock
SHORT
You sold / shorted the stock
LONG = you bought shares and fear a market fall. SHORT = you sold/shorted and fear a market rally.
Hedge Tech auto-fetches live Nifty and Bank Nifty prices. If market is closed, you can edit the index prices manually using the override fields that appear below the form.
Read the results
Understand what each number means before deciding anything
Trade Risk Summary
Position Value
₹76,200
Your total invested capital (qty × price)
Market Exposure
₹1,06,500
Beta-adjusted exposure to index moves
1% Move Impact
−₹762
Estimated loss if Nifty falls 1% (worst case)
Suggested Hedge
Short 2 contracts · Nifty Futures
Direction: SELL · Index: NIFTY
Margin Required
₹2.10L
Protection Score
72/85
Scores below 40 usually mean your position is too small for one full contract to be efficient.
Scenario Simulator
Switch between −1%, −2%, −3%, −4% tabs to see your exact P&L at each market move level. The bar chart below the table visualises the same data.
Choose your protection level
Not every trade needs a full hedge — here is how to decide
Action: All suggested contracts
Best for: Market is volatile, big event upcoming (RBI policy, US CPI, budget)
Capital: Full margin required
Action: Reduce qty by 25–50%
Best for: You're confident in the stock direction but want a safety net
Capital: Half the margin
Action: Don't place the order
Best for: Small trade, or you have a very high conviction thesis
Capital: Zero margin, full market exposure
Hedge Fit Indicator (shown on results page)
Contracts rounded to exact exposure — ideal ratio.
Minimum 1 contract exceeds your position size. Still safe — you're covered, just slightly more than needed.
Rounding down left a gap. Consider adding 1 more contract if you want fuller coverage.
Execute the hedge
Step-by-step instructions for your broker
Before you open your broker app, note these values from Hedge Tech:
Index
NIFTY / BANKNIFTY
shown on results header
Direction
SELL (Short)
always sell futures to hedge LONG stock
Contracts
e.g. 2 lots
from 'Suggested Hedge' card
Margin est.
e.g. ₹2.10L
have this much free in F&O account
Open Kite → Futures & Options
In the top search bar, type the index name (e.g. NIFTY or BANKNIFTY) and select the F&O segment.
Select the current month expiry
Choose the nearest expiry contract, e.g. NIFTY24OCTFUT. Prefer current month for lowest impact cost.
Click SELL
You are shorting (selling) futures to hedge a long stock position. Click the red SELL button on the contract.
Set quantity = contracts × lot size
Hedge Tech tells you the number of contracts. Multiply by lot size (Nifty = 75, Bank Nifty = 15) to get the quantity field value.
Order type: MIS (Intraday)
Since Hedge Tech is designed for intraday hedges, use MIS (Margin Intraday Square-off). This uses lower margin and auto-squares at 3:20 PM.
Review margin and place order
Kite shows the margin required before confirming. Verify it matches Hedge Tech's estimate (±10% is normal). Hit Confirm.
Closing the hedge (important)
When you sell your stock position, immediately close the futures position too — place a BUY order for the same number of lots at market price. If you placed the futures as MIS (intraday), your broker auto-closes it at 3:20 PM regardless. If you used NRML, you must close manually.
MIS (Intraday) ✓ Recommended
Auto-closes at 3:20 PM. Lower margin. No overnight risk.
NRML (Overnight) — Use carefully
Carries overnight. You must close manually. Higher margin.
What the hedge does NOT cover
Company-specific risk
If the stock crashes because of earnings, fraud, regulatory action, or any news about the company itself — the futures hedge won't offset that. Nifty could be flat while your stock drops 15%.
Gap openings overnight
This product is designed for intraday use only. If you hold the stock overnight, the hedge does not carry across sessions (unless you explicitly kept NRML futures).
Correlation breakdown
Beta is calculated on 20 days of historical data. In extreme events (circuit breakers, global crashes), correlations can diverge — the hedge may under-perform or over-perform the estimates.
Illiquid stocks
Some of our 35 stocks have lower liquidity in futures. Slippage (difference between expected and actual execution price) can erode hedge effectiveness, especially for larger trades.