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This page is about the finance term. For the fabric called netting see Net (textile). In general, netting means to allow a positive and a negative value to set-off and partially or entirely cancel each other out.In the context of credit risk, there are at least three specific types of netting:n general, netting means to allow a positive and a negative value to set-off and partially or entirely cancel each other out. In the context of credit risk, there are at least three specific types of netting:
2 Copyright 2005, EuroNetting Inc. To settle the net, the netting operator then pays or receives each Participantâs net position to or from the Participant, and uses the resulting long or short currency balances to offset the FX trades.he netting process takes place on a cycle basis, typically monthly, and is managed by a central entity called the Netting Center. Although netting systems are occasionally used to net out cashflows in just one currency, it is more usual for a netting system to manage cashflows in several currencies.