I think the difference is between being waived and bought out.
A waived player is released by his team without the players consent and gets the full value of his contract immediately. BUT the player has to go through the waiver wire and can be claimed by another team (and that team assumes the contract). IF the player clears waivers and signs with another team during the remainder of the contract, the original team is reimbursed by the amount the second team pays.
A bought out player has his contract terminated by mutual consent. The amount is up to the full amount of the remainder of the contract but usually at a slight discount. This player is a complete free agent and can sign for any amount that is available on the market.
A waived player is released by his team without the players consent and gets the full value of his contract immediately. BUT the player has to go through the waiver wire and can be claimed by another team (and that team assumes the contract). IF the player clears waivers and signs with another team during the remainder of the contract, the original team is reimbursed by the amount the second team pays.
A bought out player has his contract terminated by mutual consent. The amount is up to the full amount of the remainder of the contract but usually at a slight discount. This player is a complete free agent and can sign for any amount that is available on the market.