What is NETTING?

Mutual obligations settled among involved parties. Two involved parties is known as a bilateral netting. With three or more parties acting as a clearing house, it is known as a multilateral netting. With money involved, the net difference is carried forward, not the gross amounts. Foreign exchange trading, futures trading, and options trading are common activities in netting.

More On This Topic



Link to This Definition
Did you find this definition of NETTING helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary