What is Market Neutral?
Market Neutral A strategy that seeks to eliminate market risk by taking offsetting long and short positions, generating returns independent of market direction.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Market Neutral” Used in Practice?
Market neutral funds aim for positive returns by neutralizing systematic risk through matched long and short positions.
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Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
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What is Market Neutral?
A strategy that seeks to eliminate market risk by taking offsetting long and short positions, generating returns independent of market direction.
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