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How are taxes of hedging activity in the futures market treated Hedging transactions are exempt from capital gains taxes and considered 'ordinary income'. Hedging results

How are taxes of hedging activity in the futures market treated
Hedging transactions are exempt from capital gains taxes and considered 'ordinary income'.
Hedging results in losses and provide a tax write-off.
Hedging transactions are taxed at the capital gains rate in the tax code.
Hedging results in profit and is part of investment asset allocations.
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