<p>This study examines the association between derivatives usage and financial performance of Indonesia banking by analyzing of foreign currency derivatives (futures, forward, swaps and optins). Further, there are many literature has been used in order to explain the correlation between derivatives usage and corporate financial performance, and also firm size. However,on the other side, part of financial performance is the performance of the banks for the parameters comprising of Profit margin, Return on Asset (ROA), Return on Equity (ROE), Equity. We considered exclusively sample of Indonesian banking, which are listed in Indonesia Stock Exchange over period 2014 to 2019. By a unique methodology Partial Least Square, the result shows that hedging through derivatives has positive effect on corporate financial performance and also firm size of the company.</p>