Hedging Transaction

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..... by counter-contracts for the purchase or sale of an equal quantity of the product or of the material of manufacture. Whorley v. Patton-Kjose Co., 90 Mont. 461, 5 P. 2d 210, 224.A means by which a party who deals in the purchase of commodities in large quantities for actual delivery at some future time insures itself against unfavourable changes in the price of such commodities by entering into co .....

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..... otal stock of the raw material or merchandise on hand; * In order to be genuine and valid hedging contract of purchase, there should be an existing forward contract of sale by actual delivery' * The hedging contracts need not necessarily be in the same variety of the commodity. They could be in connected commodities e.g. one type of cotton against another type of cotton . - Manuals - Ready r .....

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