This chapter looks at how successful the delta and vega hedging suggested by the SABR and by the LMM‐SABR models are in practice. Ultimately, these are the acid tests of the quality of a model, but neither aspect has so far been quantitatively investigated for the (LMM)‐SABR model. Successful hedging links to how well the model predicts the changes in the option prices given the changes in the state variables. It has nothing to do with how the prices of options change as a function of strike. The chapter also describes three types of hedging, choice of hedging instrument, generalizing functional‐dependence hedging and enlists first and second order derivatives with respect to the underlyings.