tool · Risk & sizing
Portfolio Exposure Calculator: Gross, Net and Equity Ratios
Gross exposure adds long and short notional magnitudes; net exposure subtracts shorts from longs. This calculator reports both totals and their ratios to equity without assuming that unlike positions hedge each other.
Key points
- All inputs must use the same currency and valuation time.
- Short notional is entered as a positive magnitude.
- A low net total can coexist with large gross exposure.
Gross and net exposure calculator
The starting numbers are illustrative inputs. Replace them with a consistent scenario. Calculations run in your browser; no account connection or live market data is used.
Formula and boundaries
Gross exposure = long notional + short notional. Net exposure = long notional − short notional. Exposure ratio = notional ÷ equity.
- Convert all notionals and equity into the same account currency before entering them.
- Net exposure is an arithmetic signed total. Different instruments, expiries and currencies do not necessarily hedge each other.
- These totals do not measure option sensitivity, correlation, liquidation risk or broker margin requirements.
Construct compatible notional totals
For a linear instrument, notional describes the scale of the underlying position rather than the cash margin posted. Contract multipliers and currency conversion must be resolved before totals are added. CME explains notional as price times contract multiplier for equity-index futures. Other instrument types may need a different exposure measure.
This tool accepts total long notional, the positive magnitude of total short notional, and positive account equity. Gross exposure is long plus short; signed net exposure is long minus short. Dividing each by equity expresses the corresponding multiple. The tool does not connect to accounts or discover positions automatically.
Compare two portfolios with the same net amount
Suppose portfolio A contains 50,000 units of long notional, 20,000 of short notional and 10,000 of equity. Gross exposure is 70,000, net exposure is +30,000, gross/equity is 7× and net/equity is +3×. The positive sign describes the arithmetic direction of the aggregate.
Portfolio B has 30,000 long, no shorts and the same 10,000 equity. It also has net exposure of +30,000 and a net/equity ratio of +3×, but gross exposure is only 30,000 or 3× equity. Reporting only the shared net figure would conceal the different total scale of positions and potential execution obligations.
Why cancellation is not proof of a hedge
A long instrument and a short different instrument can move together, separately or in opposite directions. Maturity, currency, settlement rules and contract multipliers can change the relationship. Even a historically close relationship can weaken during stress. The arithmetic tool intentionally does not assign a correlation or declare that positions offset economically.
If long and short totals are both 50,000, net is zero while gross is 100,000. Costs, spreads, basis movements and broker margin can still matter. Options need sensitivity measures such as delta in addition to notional; simply adding their premium or face values can obscure the relevant behavior.
Make the worksheet auditable
For each holding, preserve symbol, contract month, direction, quantity, unit multiplier, valuation price, quote currency and conversion rate. Use a common timestamp when possible. Sum the translated positive magnitudes by direction, then enter those totals here. Keep pending orders separate unless your documented scenario deliberately includes their potential fills.
Equity must be positive because the displayed ratios use it as a denominator. Zero exposures are valid, and a net negative result simply means short notional exceeds long notional. These outputs do not calculate loss at a stop, margin utilization, liquidation probability or diversification quality. When examining multiple copied accounts, also distinguish duplicated economic exposure from independently funded accounts; adding account balances alone does not explain the positions that may move together.
Questions and answers
Does zero net exposure mean zero risk?
No. Gross positions can remain large, and unlike instruments may not offset. Costs, basis changes, currency movements and margin rules remain relevant.
Can I add notionals in different currencies?
Convert each to one documented currency and valuation basis first. Adding unconverted amounts produces a total with no coherent unit.
Sources and further checks
Use the current source for your exact instrument, account and platform. Referencing a general specification does not establish support for every TradeCopier workflow.
- CME: equity-index notional value · Checked September 19, 2026
- MetaQuotes: account equity and margin properties · Checked September 19, 2026
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