Hedge attributes contain the fundamental information for a hedge. Hedge attributes define the company that is involved in the hedge, the hedge strategy, the start and end dates of the hedge, the currency and notional amount of the hedge, the hedge approach, and the hedge type. Other key characteristics of the hedge, Hedge Items and Hedge Instruments, are selected in the Hedge Relationship window, from the Hedge Attribute window.

Hedge items are single assets or liabilities (exposures) that are imported from external applications that you want to hedge. In Oracle Treasury, you can hedge these exposures by defining a hedge relationship between the exposure (the hedge item) and a financial instrument used to hedge the exposure (known as a hedge instrument). For example, exposures available for use as a hedge item are customer invoices from Oracle Receivables or supplier invoices from Oracle Payables. You can include hedge items in a hedge only if they are enabled in the hedge policy.

Hedge instruments are the Treasury deal types that you can include when you define a hedge. Hedge instruments available are Foreign Exchange Spot/Forward Deals. You can include hedge instruments in a hedge only if they are defined as part of the hedge policy.

The hedge attribute contains the actual or forecast hedge approach and determines which eligible hedge items are selected to be assigned under the hedge relationship. An actual hedge approach implies that you want to create a hedge for your actual outstanding exposures. A forecast hedge approach implies that you want to create a hedge for your anticipated exposures that may or may not occur in some future period.

A hedge is fully defined when you assign the attributes to the hedge relationship. For more information on defining a hedge relationship, see: Hedge Relationships.