Hedging refers to the fact that traders sell (or buy) futures trading contracts with the same amount of hedging in the futures exchange while buying (or selling) actual commodities.

For fair value hedging, whether derivative or non-derivative, gains and losses arising from changes in fair value must be included in current profits and losses, and the book value of the hedged item should be adjusted.

For fair value hedging, the accounting treatment is:

Borrow: derivatives and other subjects,

Credit: gains and losses from changes in fair value.