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nnetting
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There are 8 letters in NNETTING ( E1G2I1N1T1 )
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| Nnetting might refer to |
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In law, set-off or netting are legal techniques applied between persons with mutual rights and liabilities, replacing gross positions with net positions. It permits the rights to be used to discharge the liabilities where cross claims exist between a plaintiff and a respondent. The result being that the gross claims of mutual debt produces a single, net claim. The net claim is known as a net position. In other words, a set-off is the right of a debtor to balance mutual debts with a creditor. In bookkeeping terms, set-offs are also known as reconciliations. To determine a set-off, simply subtract the smaller debt from the larger. * Any balance remaining due either of the parties is still owed, but the remainder of the mutual debts has been set off. The power of net positions is to reduce credit exposure, also holding regulatory capital requirement and settlement advantages, which contributes to market stability. In regard to the financial market, net positions are vital. |