neutral neu·tral (n&oomacr;'trəl, ny&oomacr;'-)
adj.
Belonging to neither kind; not one thing or the other; indifferent.
Of or relating to a solution or compound that is neither acidic nor alkaline.
Of or relating to a compound that does not ionize in solution.
Of or relating to a particle, an object, or a system that has a net electric charge of zero.
neutral (n 'trəl) Pronunciation Key
|
neutral
An investment opinion that is neither bullish nor bearish. A neutral opinion for an individual stock generally indicates the stock should not be purchased or sold.
Of or relating to an investment position that is likely to produce the best results if the market does not exhibit a major upward or downward movement.
Neutral
1) A term that describes an option on a security or market that is neither bullish nor bearish.
2) A term that describes a person who is non-biased in the case of a dispute, such as an arbitrator.
Investopedia Commentary
If an investor has a neutral opinion, that is, he or she feels 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.
Related Links
Why Do Markets Move?
Market Strength Tutorial
See also: Bear, Bull, Delta Neutral, Gamma Neutral, Index, Market Neutral, Option, Security