### Question
How does Accounting Periods and Methods of Accounting define hedge?


### Answer
Under *26 U.S.C. § 475*, **hedge** is defined as:

> any position which manages the dealer's risk of interest rate or price changes or currency fluctuations, including any position which is reasonably expected to become a hedge within 60 days after the acquisition of the position

#### Citation:
  - *26 U.S.C. § 475*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart D-Inventories**

