*could* be an option but please take note of my uncertainty

"Closing" a hedge is commonly used - you can use "closeout" if either standardised contracts (exchange-traded futures/options) are used for hedging, or if an OTC hedge is fully reversed (e.g. if a swap is *closed out* by entering into an offsetting agreement with the same counterparty).

An alternative would be "reversing the hedge".

Hi Carmen,

this was already asked, actually one of my own questions: see
http://www.proz.com/kudoz/598837?float=1

However, for some reason it's not coming up on the searches, even though I did enter it in the glossary [by coincidence I needed to quote the info to a client today, so that I was looking for it myself and came across your query this way].

Note that this is the correct term in connection with IAS. If your context is different [less specific/formal] you may also be able to use one of the other answers.

Best

Dee