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.

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

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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.

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net currency exposure credit netting