Cash neutral,
Definition of Cash neutral:
A strategy that does not need net cash for a transaction. These strategies are a type of synchronized buying and selling. A market neutral and cash neutral strategy overvalues sold instruments and undervalues purchased instruments. Hedge funds are popular cash neutral strategies because they do not need to hold money to produce returns.
Cash neutral is a phrase which generally refers to one of several investment strategies that have a similar characteristic: the long positions and short positions in the portfolio (from the perspective of accounting) cancel each other out, and it is as if no cash is allotted to the trading positions. This is sometimes done to be neutral to market movements, and at other times done to leverage investing money.
Cash neutral transactions are most often made by simultaneously buying and selling financial instruments. For example, if a trader were to sell a stock short and then buy a quantity of different stocks valued at the same amount as those sold short, the trader's account would be considered cash neutral. That's because the trader now has two positions, but the broker's accounting still considers the trader to have the same amount of cash in that account as before the two positions were established.
Meaning of Cash neutral & Cash neutral Definition
