Trading & Market Structure

Netting

Definition

What is Netting?

Offsetting obligations so only a net amount is settled.

Example in practice

Two opposite swap payments are combined into one net payment.

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The highest price a buyer is currently willing to pay for a security.

The lowest price a seller is currently willing to accept for a security.

The difference between the best available buying and selling prices.

An instruction to buy or sell immediately at the best available prices.

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