What is the meaning of 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.

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APABarry Goldsmith. (2010). neutral hedge. Retrieved September 28, 2026, from http://smartdefine.org/neutral_hedge/definitions/1159026
ChicagoBarry Goldsmith. 2010. "neutral hedge" http://smartdefine.org/neutral_hedge/definitions/1159026 (accessed September 28, 2026).
HarvardBarry Goldsmith 2010, neutral hedge, Smart Define, viewed 28 September, 2026, <http://smartdefine.org/neutral_hedge/definitions/1159026>.
MLABarry Goldsmith. "neutral hedge" 21 October 2010. Web. 28 September 2026. <http://smartdefine.org/neutral_hedge/definitions/1159026>