Offsetting: meaning, definitions and examples

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offsetting

 

[ ˈɒfˌsɛtɪŋ ]

Noun / Verb
Context #1 | Noun

finance

The practice of using financial instruments to hedge against potential losses in other investments.

Synonyms

balancing, counterbalancing, hedging.

Which Synonym Should You Choose?

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Word Description / Examples
offsetting

Used when making one thing less strong by adding something else in the opposite direction, commonly in business or environmental contexts.

  • The company planted trees with the aim of offsetting their carbon emissions.
  • Extra work on the weekend ended up offsetting the hours I missed during the week.
hedging

Frequently used in financial and investment contexts to describe limiting risks by making compensatory transactions. It can also mean avoiding a direct decision or statement.

  • Investors often use hedging strategies to protect against market volatility.
  • She was hedging her responses, not giving a clear yes or no.
balancing

Used to describe keeping different elements in proportion or ensuring that different aspects are equal or harmonized.

  • She is very good at balancing her professional and personal life.
  • Balancing the budget was the new government's top priority.
counterbalancing

Used when you want to neutralize or counteract the effect of something by using an opposite force or influence, often in mechanical or strategic contexts.

  • The new policy serves as a counterbalance to the recent financial changes.
  • Counterbalancing the weight on both sides of the scale was necessary for the experiment.

Examples of usage

  • Many investors use offsetting to reduce their overall risk exposure in the market.
  • Offsetting can be a useful strategy in volatile market conditions.
Context #2 | Verb

printing

The process of aligning or adjusting an image or text on a printing press to compensate for inaccuracies.

Synonyms

adjusting, aligning, compensating.

Which Synonym Should You Choose?

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Word Description / Examples
offsetting

Offsetting is used when one thing balances out the effect of another, often in economic or environmental contexts.

  • The company is offsetting its carbon emissions by planting trees
  • The high cost of production was offset by the strong sales
aligning

Aligning involves arranging things in a straight line or coordinating actions or policies to match or complement each other.

  • He is aligning the pictures on the wall
  • The team is aligning their goals with the company's mission
adjusting

Adjusting refers to making small changes to something in order to achieve a desired result or to adapt to new conditions.

  • She is adjusting the brightness of her monitor
  • They are adjusting their business strategy to meet the new market demands
compensating

Compensating means providing something, usually money or effort, to make up for a loss, damage, or inconvenience.

  • The company is compensating employees for their overtime work
  • She is compensating for her lack of experience with hard work

Examples of usage

  • The printer spent hours offsetting the colors to ensure a perfect print.
  • Offsetting the text can help improve the readability of the document.

Translations

Translations of the word "offsetting" in other languages:

🇵🇹 compensação

🇮🇳 क्षतिपूर्ति

🇩🇪 Kompensation

🇮🇩 kompensasi

🇺🇦 компенсація

🇵🇱 kompensacja

🇯🇵 補償 (ほしょう)

🇫🇷 compensation

🇪🇸 compensación

🇹🇷 tazminat

🇰🇷 보상 (bosang)

🇸🇦 تعويض

🇨🇿 vyrovnání

🇸🇰 kompenzácia

🇨🇳 补偿 (bǔcháng)

🇸🇮 kompenzacija

🇮🇸 bætur

🇰🇿 өтемақы

🇬🇪 ანაზღაურება

🇦🇿 kompensasiya

🇲🇽 compensación

Etymology

The word 'offsetting' originated from the verb 'to offset', which comes from the Old French word 'offzet', meaning to set off or balance. The concept of offsetting has been used in various fields such as finance, printing, and even environmental conservation. In finance, offsetting is commonly used to hedge against risks, while in printing, it is used to align images or text. The term has evolved over time to encompass a wide range of applications and continues to be an important strategy in different industries.

Word Frequency Rank

With rank #15,148, this word belongs to specialized vocabulary. While not common in everyday speech, it enriches your ability to express complex ideas.