Define: Netting

UK Accounting Glossary

Definition: Netting

What is the dictionary definition of Netting?

Dictionary Definition

Netting entails offsetting the value of multiple positions or payments due to be exchanged between two or more parties. Netting is used to determine which party is owed remuneration in a multiparty agreement.


Full Definition of Netting

Netting refers to the settlement of mutual obligations between two parties (called bilateral netting) or with a third party acting as a clearinghouse (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.


Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Netting. Payroll & Accounting Heaven Ltd. April 03, 2020
Chicago Manual of Style (CMS):
Netting. Payroll & Accounting Heaven Ltd. (accessed: April 03, 2020).
American Psychological Association (APA):
Netting. Retrieved April 03, 2020, from website:

Definition Sources

Definitions for Netting are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 30th September 2019.