hedging


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Related to hedging: hedging bets, Currency Hedging

hedging

insuring against making a loss whilst holding stocks of a commodity. Usually achieved by taking an opposite position on the futures market.
References in periodicals archive ?
mortgage bankers hedging interest-rate risks; dealers in physical commodities (grain, oil, coffee, metals, etc.
Although the FASB has decided not to release its tentative conclusions for general public comment, the changes implied could have far-reaching consequences for companies engaged in hedging and financial risk-management programs.
United Parcel Service, the delivery company, has been hedging its energy risk for a decade.
Another question the hedging subproject will tackle is whether hedge accounting should extend to anticipated transactions.
Observation: The rules require that the accounting method used for hedging transactions must reflect income clearly.
90-17, Hedging Foreign Currency Risks with Purchased Options, should be followed.
For companies hedging forecasted exposures and electing hedge accounting, the principal challenge was to ensure that derivatives could be matched to a pool of exposures with similar time horizons.
Further, taxpayers frequently change their hedging strategies; thus, hedge identifications or policies may not cover newly implemented hedging strategies.
Prior to the issuance of the final hedging regulations,(2) significant controversies arose between the IRS and taxpayers about the fundamental definition of, and requirements for, a hedging transaction for tax purposes -- especially in the aftermath of the 1988 U.
90, the company looked like it did a great job beating the budget rate, but it could have achieved it without hedging.
Some taxpayers may be accounting for the gain or loss by spreading it over the entire remaining term of the hedged debt instrument, even though the hedging transaction relates to a shorter period of time.
Many trading and hedging models and programs imply steadily flowing market swings.