---
title: "How To Understand Hedging Details (11X Only)"
description: "Understanding the Hedge Pop-Up in Your Trading Platform"
url: https://help.optionsautotrader.com/en/articles/30-how-to-understand-hedging-details-11x-only
collection: "Tips & FAQs"
updated: 2025-11-14
language: en
---

# How To Understand Hedging Details (11X Only)

Understanding the Hedge Pop-Up in Your Trading Platform

When trading a 1-1-2 strategy, you may encounter a hedge pop-up if your trade has been converted into a hedge. This guide will walk you through how to interpret the hedge pop-up, including key trade details, costs, and potential profits.

## **Step 1: Identifying a Hedge Trade**

1.  Open your trading platform.
    
2.  Locate your trade and check for the **hedge icon**—this indicates the trade has been converted into a hedge.
    
3.  Click on the trade to view more details.
    

## **Step 2: Viewing Trade Details**

1.  Click on the **three-line menu** (Trade Details).
    
2.  Look for the **1-1-2 trade structure** under your positions.
    
3.  If part of the trade has been closed (e.g., one leg was closed on a specific date), the remaining position is now a **put debit spread**, confirming the hedge.
    

## **Step 3: Understanding Hedge Protection**

1.  Click the **Hedge** button to see detailed hedge information.
    
2.  The pop-up will show:
    
    -   **Downside protection value** (e.g., $1,000 if the market crashes).
        
    -   **Cost of the hedge** (e.g., $230).
        

**Key Concept:**

-   A hedge provides protection but comes at a cost.
    
-   In this example, if the market drops, the hedge can generate **a max profit of $1,000** but costs **$230** to maintain.
    

## **Step 4: Reviewing Profit & Loss (P&L)**

1.  The pop-up will also display your **total profit and loss**, factoring in the hedge cost.
    
2.  Your P&L is calculated as:
    
    -   **Profit from the closed portion of the trade** – **Cost of hedge** = **Net Profit/Loss**
        
3.  If the hedge goes to **zero**, the **cost of the hedge will be deducted from your overall profit**.
    

## **Step 5: Making a Decision**

-   If the market is currently above the hedge profit level (e.g., $1,164 vs. $1,000), you have an opportunity to **let the hedge run or exit it**.
    
-   Over time, the hedge will lose value unless the market moves in your favor.
    
-   Most traders choose to **leave the hedge on** for protection.
    

## **Summary**

-   **Hedge icon** signals a trade conversion.
    
-   **Trade Details** show your remaining position.
    
-   **Hedge pop-up** displays max protection and cost.
    
-   **P&L calculation** helps assess the trade’s impact.
    
-   **Decision-making** depends on market conditions and your risk tolerance.
    

By understanding the hedge pop-up, you can make informed decisions about managing your trade and potential risks.

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