netting

Popular Terms
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.

Use 'netting' in a Sentence

The arrangement was deemed satisfactory by both parties after the netting occurred where an intermediary determined the issues of contention.
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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.
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You may need to make sure that both sides agree to it before you ever get to far into the netting process.
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