Exposure netting

Exposure netting

Offsetting exposures in one currency with exposures in the same or another currency, when exchange rates are expected to move in such a way that losses or gains on the first exposed position should be offset by gains or losses on the second currency exposure.
References in periodicals archive ?
These techniques include forward market hedge, futures hedge, money market hedge, currency options, exposure netting and the use of official export/financing agencies.
The benefits of exposure netting include the reduction of foreign exchange required to settle inter-company transactions and the reduction of transfer and commission charges through fewer and smaller cross-border payments.