Neutral

1. Impact.

An action or policy having no effect on a measure under review, having no net effect on it, or intended to have no net effect on it.

For example, carbon-neutral or neutral interest rate.

2. Risk management - hedging.

A position that is considered to be hedged against changes in a market rate or price, or other market-related variable.

For example, delta neutral or vega neutral.

3. Financial reporting.

Financial amounts reported on an adjusted basis to remove distortions and aid comparability.

For example, FX-neutral financial amounts.

4. Valuation or policy basis.

A basis of valuation or decision making that is independent of the variable mentioned.

For example, risk neutral valuation methods.

See also