The total exposure with netting is 1 (= 7 + 5 + 8 - 7 - 4 - 2 - 6)
Without netting, total exposure = 20 (= 7 + 5 + 8)

Things to Remember

• Marking to market values represent the current market value of an entity's positions
• Netting refers to offsetting gains and losses across different transactions or positions
• Total exposure is the sum of all positive and negative values, representing the overall risk
• Netting helps in reducing the overall exposure by offsetting opposite positions
• It is important to consider both positive and negative values when calculating total exposure