Multilateral exchange
A multilateral exchange is a transaction, or forum for transactions, which involve more than two parties. For example, Alice gives Bob an apple in exchange for an orange, that is a bilateral exchange.A multilateral exchange would involve a third party, for example:Alice gives an apple to Bob who gives an orange to Charles, who gives a pear to Alice. In the real world, such transactions are spread over time, and involved items of different values, and involve many more parties. A special type of accounting is used for this, called mutual credit, or credit clearing.
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Multilateral exchange
A multilateral exchange is a transaction, or forum for transactions, which involve more than two parties. For example, Alice gives Bob an apple in exchange for an orange, that is a bilateral exchange.A multilateral exchange would involve a third party, for example:Alice gives an apple to Bob who gives an orange to Charles, who gives a pear to Alice. In the real world, such transactions are spread over time, and involved items of different values, and involve many more parties. A special type of accounting is used for this, called mutual credit, or credit clearing.
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A multilateral exchange is a t ...... al credit, or credit clearing.
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A multilateral exchange is a t ...... al credit, or credit clearing.
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Multilateral exchange
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