NEUTRAL HEDGE


Meaning of NEUTRAL HEDGE in English

Hedge which 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 .

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.