Anticipatory Hedge

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 ?
And even if anticipatory hedge accounting is acceptable for foreign currency options, what does the CPA do with instruments such as foreign exchange participating forwards and range forward contracts that have elements of both options and forwards?
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.