Offsetting Transaction

Offsetting Transaction

An offsetting transaction can be the result of a netting arrangement between trading counterparties where flows in each direction are offset and one counterparty makes a netted payment to another on a novated or non-novated basis. It can also refer to a counterparty opening a trade (in effect a risk hedging or mirror trade) that pays out in the opposite direction to an existing position, or reverses (closes) an existing position.

logo-animationlogo-animationlogo-animation

Related terms