counterparty

American  

[koun-ter-pahr-tee] / ˈkaʊn tərˌpɑr ti /

Also contraparty

noun

Finance.

plural

counterparties

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

---

Etymology

Origin of counterparty

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

Example Sentences

It’s now up to Washington to reassure the private sector that it remains a reliable counterparty.

From The Wall Street Journal • Apr. 24, 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

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

That raises doubts about who would be the government counterparty to any deal and who would guarantee the safety and stability of the investment—the U.S.?

From Los Angeles Times • Jan. 12, 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