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Glossary

Navigate the complex world of currency management with our comprehensive dictionary of financial terms and definitions.

Payment Netting

Payment netting is a procedure to settle transactions while minimising the need for funds to actually change hands. An asset manager may be ‘long’ Credit Default Swaps on Company A and ‘short’ on Company B. Instead of making payments for one position while receiving payments from the other, the payment can be ‘netted out’ to avoid unnecessary movements of funds.