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counterparty

American  
[koun-ter-pahr-tee] / ˈkaʊn tərˌpɑr ti /
Also contraparty

noun

Finance.
counterparties plural
  1. the other person or institution entering into a financial contract or transaction.

    the default of a counterparty.


counterparty British  
/ ˈkaʊntəˌpɑːtɪ /

noun

  1. a person who is a party to a contract

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Other Word Forms

Inflected Forms

noun

Etymology

Origin of counterparty

1980–85; counter- + party (in the legal sense “a signatory”)

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Novartis also was the counterparty in the complicated 2014 deal in which GSK swapped its oncology portfolio for the Swiss firm’s vaccines business.

From MarketWatch • Jun. 9, 2026

To manage risk, banks and institutional investors typically have rules capping their exposure to a single counterparty or tenant.

From The Wall Street Journal • Apr. 24, 2026

Indexing presumes general market efficiency: The counterparty to an active seller is an active buyer; both are confident, well-staffed and diligent.

From The Wall Street Journal • Mar. 27, 2026

He believes that whatever Cohen may have bought “should stand out like a sore thumb” when the counterparty discloses its equity holdings in mid-May or discloses a 5% position in a company.

From MarketWatch • Mar. 26, 2026

“Never once has any counterparty been willing to sell me my list at my marks,” he wrote in an e-mail.

From "The Big Short" by Michael Lewis

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