Using 6N Futures to Hedge NZD/USD Exposure
6N futures are one of the cleanest ways to hedge NZD/USD exposure. Whether you run a business with NZD income, hold NZD-denominated assets, or simply have open NZD/USD positions you don’t want to close, 6N gives you a fast, regulated hedge with fixed tick value and no dealer games.
Why 6N Makes a Good Hedge
Futures give you something spot FX doesn’t: certainty. Every tick of 6N is always worth $10, and liquidity during the Asian and U.S. sessions is strong enough to protect you from most nonsense.
The hedge logic is simple:
- If you’re exposed to NZD strength, you short 6N.
- If you’re exposed to NZD weakness, you go long 6N.
That’s the entire game. No roll costs, no swap fees, no hidden broker adjustments.
Who Actually Needs a 6N Hedge?
- Traders holding NZD/USD positions overnight
- Businesses receiving revenue in NZD
- Investors holding NZD bonds or NZ-listed equities
- Anyone exposed to NZD currency swings and wants to offset risk
If you don’t want to unwind your core position but want to cap risk, futures solve the problem instantly.
How Many Contracts Do You Use?
The 6N contract size is:
100,000 NZD per contract
So the hedge amount is straightforward:
| Exposure | Hedge |
|---|---|
| 100,000 NZD | 1 contract |
| 250,000 NZD | 2–3 contracts (depending on precision) |
| 500,000 NZD | 5 contracts |
If you need finer sizing, the micro contract (M6N) may be a better fit.
Long Hedge vs. Short Hedge
Use a long hedge when:
- You’re exposed to NZD losing value
- You hold NZD assets that could drop
- Your business revenue is NZD-based
Use a short hedge when:
- You’re exposed to NZD gaining value
- You carry debt or costs in USD
- You have open NZD/USD long positions
The goal is simply to offset the NZD swing in your underlying exposure.
When You Should Not Hedge
- Low volatility environments where noise dominates
- When you’re guessing instead of protecting a real exposure
- When the amount of risk is too small to justify futures margin
Hedging is a risk tool, not a profit tool.
Final Take
6N futures are a clean, regulated, and precise way to hedge NZD/USD exposure. If you understand the tick value and contract size, executing a hedge becomes mechanical. For more background on how the underlying moves, read the 6N strategy guide or the liquidity breakdown before you start deploying hedges in real time.