Anticipatory Hedge

(redirected from Anticipatory Hedges)

Anticipatory Hedge

An investment or other transaction one makes in order to hedge against (or reduce the risk of) another investment or transaction one intends to make in the future.
References in periodicals archive ?
1221-2(e)(3)(ii) and (iii) provide additional identification requirements for inventory hedges, hedges of debt, anticipatory hedges of debt instruments and assets, and hedges of aggregate risk.
Taxpayers should be able to enter into anticipatory hedges of future sales income.