Netting

Netting,

Definition of Netting:

  1. Open-meshed material made by knotting together twine, wire, rope, or thread.

  2. Settlement of mutual obligations between two parties (called bilateral netting) or with a third party acting as a clearing house (called multilateral netting) where the net difference (not the gross amounts) is carried forward. Netting is a common practice in trading of foreign exchange, futures, and options.

  3. Netting entails offsetting the value of multiple positions or payments due to be exchanged between two or more parties. It can be used to determine which party is owed remuneration in a multiparty agreement. Netting is a general concept that has a number of more specific uses, including in the financial markets.

  4. Netting is a method of reducing risks in financial contracts by combining or aggregating multiple financial obligations to arrive at a net obligation amount. Netting is used to reduce settlement, credit, and other financial risks between two or more parties. .

Synonyms of Netting

Apprehension, Arabesque, Arrest, Arrestation, Arrestment, Basketry, Basketwork, Bust, Cancellation, Capture, Cross-hatching, Crossing-out, Filigree, Fret, Fretwork, Grate, Grating, Grid, Gridiron, Grille, Grillwork, Hachure, Hatching, Interlacement, Intertexture, Intertwinement, Lace, Lacery, Lacework, Lacing, Lattice, Latticework, Mesh, Meshes, Meshwork, Net, Network, Pinch, Plexure, Plexus, Raddle, Reticle, Reticulation, Reticule, Reticulum, Riddle, Screen, Screening, Seizure, Sieve, Texture, Tissue, Tracery, Trellis, Trelliswork, Wattle, Weave, Weaving, Web, Webbing, Webwork, Weft, Wicker, Wickerwork, Netting, Meshwork, Mesh, Webbing, Tulle, Fishnet, Openwork, Lace, Lacework, Latticework, Lattice

How to use Netting in a sentence?

  1. You may need to make sure that both sides agree to it before you ever get to far into the netting process.
  2. Protect crops from pigeons and other birds with netting.
  3. Netting offsets the value of multiple positions or payments due to be exchanged between two or more parties.
  4. The arrangement was deemed satisfactory by both parties after the netting occurred where an intermediary determined the issues of contention.
  5. Netting is used in a number of settings and instances—securities or currency trading, bankruptcy, and inter-company transactions, among others.
  6. Netting can involve more than two parties, called multilateral netting, and generally involves a central exchange or clearinghouse.
  7. The netting agreement could not have come at a better time and I was so glad that things were going to be settled and remain that way for a long time.

Meaning of Netting & Netting Definition