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Cavalry does not have to have initiative to scout. A cav unit will always have 3 MP, which is enough to scout most important adjacent areas (exception is in Winter over a river). Cav should stay in the front lines to scout/raid and prevent enemy scouting/raiding. For the Union, it's very important to have Cav with the AC to defend the depots against raids, and also to scout areas the AC is going to attack. The good cav leaders often have a good chance of getting initiative without the AC, so on defense, the cav doesn't need to be with the AC, if the AC is in an unspotted area.

In order to become hidden, a unit must not end it's turn next to an enemy area, so lateral moves will not hide your troops.

    Good info here!!  Helps me out a lot on stuff I might have eventually had to ask about.