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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

Noun Inflected Forms

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.

See Examples For:

By 2024, CoinEx had replaced Binance as the largest foreign counterparty to Nobitex, according to the blockchain data.

From The Wall Street Journal Jun. 25, 2026

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

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

The second is the maturation of Chinese alternatives in key technologies—certain chips, AI agents, batteries —which has lowered the perceived cost of cutting Western counterparties out.

From The Wall Street Journal May 5, 2026

“We are in active negotiations with multiple counterparties, but as of today, we’ve not executed a definitive lease agreement,” Fermi Chief Financial Officer Miles Everson said on a conference call Monday morning.

From Barron's Mar. 30, 2026

These volumes must be returned to counterparties roughly evenly over the next three years, analyst Adrian Prendergast says.

From The Wall Street Journal Feb. 11, 2026

The Wall Street Journal, citing people familiar with the matter, reported that the New York Fed on Friday reached out to potential trading counterparties on the yen and the U.S. dollar.

From MarketWatch Jan. 26, 2026

Oddly, as Mike Burry’s investors grew restive, his Wall Street counterparties took a new and envious interest in what he was up to.

From "The Big Short" by Michael Lewis

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