Definitions for "Net Settlement"
A condition of a swap agreement that simplifies the settlement process by having the counterparty that owes the larger amount pay the net of the larger and smaller gross obligations.
A method used by brokers for transaction settlement by netting a customer's purchase and sale of a particular stock during a trading day. On the settlement day, the third business day after the transaction, the customer pays the broker if the number of shares of his purchase was more than that of his sale of the same stock, and vice versa if his sale was more than his purchase. As investors do not have to pay for their purchases in full, the net settlement method imply an increase in their trading liquidity.
The settlement of a number of obligations or transfers between or among counterparts on a net basis.