Offsetting: meaning, definitions and examples
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offsetting
[ ˈɒfˌsɛtɪŋ ]
finance
The practice of using financial instruments to hedge against potential losses in other investments.
Synonyms
balancing, counterbalancing, hedging.
Which Synonym Should You Choose?
Word | Description / Examples |
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offsetting |
Used when making one thing less strong by adding something else in the opposite direction, commonly in business or environmental contexts.
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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.
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balancing |
Used to describe keeping different elements in proportion or ensuring that different aspects are equal or harmonized.
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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.
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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.
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?
Word | Description / Examples |
---|---|
offsetting |
Offsetting is used when one thing balances out the effect of another, often in economic or environmental contexts.
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aligning |
Aligning involves arranging things in a straight line or coordinating actions or policies to match or complement each other.
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adjusting |
Adjusting refers to making small changes to something in order to achieve a desired result or to adapt to new conditions.
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compensating |
Compensating means providing something, usually money or effort, to make up for a loss, damage, or inconvenience.
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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.