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under/over hedge

Sshilpa8y ago
under hedged to be added , over hedge to be subtracted . is it always the same for receipt and payment case?
John MoffatJohn MoffatTutor8y ago#1
No. If you have over-hedged then you have hedged too much. If the transaction is a payment, then you will be converting too much and so the over hedge will be converted back as a receipt. If it is under hedged then you will not have converted enough and so you need to convert more to make the payment. It is the other way round if the transaction is a receipt.
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