HomeDefinitionsCompareDebt Neutral hedgeThe financial definition for Neutral hedge:Hedge that is expected to yield a dollar-neutral result of the combined position, regardless of price change in any part of the hedge securities. For any convertible trading at a premium, this ratio is less than 100%. The higher the convertible premium, the lower a ratio must be to be neutral. See: Delta. Similar MatchesDelta neutralDelta neutralDescribes value of a portfolio not affected by changes in the value of the asset on which the options are written. Market NeutralMarket NeutralIn the context of hedge funds, a style of management that has long and short equity exposure with nearly exposure on average to fluctuations in the market. However, the on average qualification is important. The risk of the longs and the shorts could fluctuate through time leading to negative returns when the market falls sharply. NeutralNeutralDescribing an opinion that is neither bearish not bullish. Neutral option strategies are generally designed to perform best if there is little or no net change in the price of the underlying stock or index. See also Bearish and Bullish. Further SuggestionsNeutral periodNeutral stock Risk neutral Tax neutrality Click to compare definitions of Neutral hedge Click to view definitions beginning ne |