Offset

Elimination of a long or short position by making an opposite transaction. Related: liquidation. The New York Times Financial Glossary

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▪ I. offset off‧set ¹ [ˈɒfset, ˌɒfˈset ǁ ˈɒːfset, ˌɒːfˈset] verb offset _PTandPP offsetting _PRESPART [transitive] ACCOUNTING

if something such as a cost or sum of money offsets another cost etc, it has the effect of reducing or balancing it, so that the situation remains the same:

• He expects the fourth quarter to be profitable, though not profitable enough to offset losses earlier in the year.

• The cost of the flight was offset by the cheapness of the hotel.

offset something against something

• He was able to offset his travel expenses against tax.

  [m0] ▪ II. offset off‧set ² [ˈɒfset ǁ ˈɒːf-] noun

1. [uncountable] BANKING the legal right of a bank to take money from a customer's bank account if a loan has not been paid

2. [countable] ACCOUNTING an amount of money recorded on one side of a ledger (= financial record) that is equal to an amount on the opposite side of the same ledger, or is equal to an amount recorded in the ledger for a different account

3. [countable] COMMERCE in international trade, a quantity of goods that is exported in exchange for a quantity of goods that has been imported:

• Some government purchases are paid for by offsets.

— see also barter²

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Ⅰ.

offset UK US /ˌɒfˈset/ verb [T] (offsetting, offset, offset)

► to balance one effect against an opposing effect, so that there is no great difference as a result: »

The price of petrol products was offset by a decline in motor vehicle prices.

offset sth against sth »

Offset any losses against your overall income.

► ENVIRONMENT, SOCIAL RESPONSIBILITY to pay an amount of money when you do something, for example travelling by air, that produces a lot of harmful waste products. The money is used to do something that protects against climate change, such as planting trees: »

When we are forced to travel by air, we always check the box to choose to offset our flights.

Ⅱ.

offset UK US /ˈɒfset/ noun

► [U] LAW, FINANCE the right to pay a person or organization less money than you owe them because they also owe you money: »

What is the position regarding the offset of one debt against the other?

► [C] ACCOUNTING a payment that is used to reduce the effect of another payment: »

The Australian government has announced changes to its tax offset rules for overseas production.

► [C or U] ENVIRONMENT, SOCIAL RESPONSIBILITY a payment that is made or an action that is done in order to pay for or reduce the harmful effect that something has on the environment: »

carbon offset

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You have the opportunity to purchase an offset when you book your flights.