Liquid and Net credit/debit position: Difference between pages

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1. ''Assets.''
''Netting systems''.


In relation to an asset, able to be turned into cash quickly and without significant loss compared with current market value.
A participant’s net credit or net debit position in a netting system is the sum of the value of all the transfers the participant has received up to a particular point in time, minus the value of all the transfers the participant has sent.


If the difference is positive, the participant is in a net credit position. 


2. ''Markets.''
If the difference is negative, then the participant is in a net debit position.  


In relation to a market, a situation in which large quantities of the asset traded in the market can be bought or sold at any time, with low transaction costs, and without affecting the market price.


The net credit or net debit position at settlement time is defined as the net settlement position. 


== See also ==
These net positions may be calculated on a bilateral or multilateral basis.
* [[Cash and cash equivalents]]
* [[Cash forecasting]]
* [[Deep market]]
* [[Illiquid]]
* [[Liquid market]]
* [[Liquidate]]
* [[Liquidation]]
* [[Liquidity]]
* [[Liquidity buffer]]
* [[Liquidity Coverage Ratio]]
* [[Liquidity preference]]
* [[Liquidity management]]
* [[Liquidity premium]]
* [[Liquidity risk]]
* [[Solvency]]
* [[Stress]]
* [[Survival period]]




=== Other resources ===
== See also ==
*[[Media:2015_06_June_-_Safety_first.pdf| Safety first, The Treasurer, 2015]]
* [[Credit]]
 
* [[Debit]]
[[Category:The_business_context]]
* [[Netting]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 08:24, 11 April 2015

Netting systems.

A participant’s net credit or net debit position in a netting system is the sum of the value of all the transfers the participant has received up to a particular point in time, minus the value of all the transfers the participant has sent.

If the difference is positive, the participant is in a net credit position.

If the difference is negative, then the participant is in a net debit position.


The net credit or net debit position at settlement time is defined as the net settlement position.

These net positions may be calculated on a bilateral or multilateral basis.


See also