netting and matching

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September 3, 2018 at 7:12 pm #471115
ayeshatabani
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Sir, I have been unable to differentiate between netting and matching even after reading technical article on it. Can they be considered the same thing?
thankyou
September 4, 2018 at 8:22 am #471197
John Moffat
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No they are not quite the same.

Netting is cancelling a receipt against a payment.
Matching is having an expense in the same currency as income.

I explain the distinction in my free lectures on foreign exchange risk management.
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