The settlement of obligations between two parties that processes the combined value of transactions. It is designed to lower the number of transactions required. For example, if Bank A owed Bank B $100,000, and Bank B owed Bank A $25,000, the value after netting would be a $75,000 transfer from Bank A to Bank B ($100,000 - $25,000).

Use Netting in a sentence

You should try to figure out how the netting will play out and use it in your favor if you can.

​ Was this Helpful? YES  NO 11 people found this helpful.

There was a netting agreement between the two companies that were involved and everything was going good for everyone involved.

​ Was this Helpful? YES  NO 10 people found this helpful.

After paying for supplies, rent, utilities and staffing, the nail salon was netting only 5% of their total income per month in the first quarter of their fiscal year.

​ Was this Helpful? YES  NO 12 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
credit netting net currency exposure