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Netting

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Dictionary Says

Definition of 'Netting'

1. Settling mutual obligations at the net value of a contract as opposed to its gross dollar value.

2. Reducing the transfer of funds between subsidiaries to a net amount.
Investopedia Says

Investopedia explains 'Netting'

Netting often occurs in situations in which one of the participants is experiencing extreme financial difficulty, such as bankruptcy.

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