/klōs-out net-ing/ – Phrase
Definition: Quy định về việc thanh toán tất cả các khoản nợ giữa các bên trong trường hợp một bên phá sản hoặc không thực hiện đúng cam kết.
A more thorough explanation: a contractual process involving the early termination, valuation, and determination of a net balance. Where parties in a financial transaction have multiple payments in different directions between them, and one of them does not pay, the payments are set against each other so that one final amount will be paid by one party to the other
Example: Close-out netting is the primary means of mitigating credit risks associated with over-the-counter derivatives.