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Investments glossary

Neutral


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Quotes of the day:

A bad man, though raised to honour, always returns to his natural course, as a dog?s tail, though warmed by the fire and rubbed with oil, retains its form

— The Hitopadesa

Neutral describes a position taken in a market that is neither bullish nor bearish – in other words, it is insensitive to the direction of the market’s price. If an investor has a neutral opinion – that is, he feels that a security or index will neither increase nor decrease in value in the near future – the investor can undertake an option strategy that may profit despite the lack of movement in the underlying security.


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