Dictionary.com
Thesaurus.com

counterparty

American  
[kaun-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:

Hedge funds are often the counterparty in interest-rate swaps, which some long-term investors use to protect themselves against big moves in rates.

From The Wall Street Journal ● Sep. 15, 2026

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

By market-making, Flutter and DraftKings become a counterparty in certain prediction market trades.

From Barron's ● May 7, 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

There is now less pressure on holders of those bonds to hedge their portfolios by entering into derivatives contracts with counterparties who often then offset their own position by dumping Treasurys.

From The Wall Street Journal ● Oct. 8, 2026

The firm has agreed to pay £13m to the counterparties by 31 December and a further £13m by 31 March 2027.

From BBC ● Sep. 7, 2026

The Wall Street swap counterparties of SRS and Pentwater could be getting squeezed as the stock surges as they seek to adjust their hedge positions as well as those short for fundamental reasons.

From Barron's ● Apr. 20, 2026

If LPs experience substantial losses in private-credit investments, they may draw on these facilities or adjust portfolios in ways that affect their bank counterparties.

From MarketWatch ● Apr. 13, 2026

“I am actually protesting to my counterparties that there must be fraud in the marketplace for credit default swaps to be at all-time lows,” Burry wrote in an e-mail to an investor he trusted.

From "The Big Short" by Michael Lewis

Random Word

Spin the wheel and learn a new word!

Get a word

Vocabulary.com logo
by dictionary.com

Dictionary.com's Learning Companion

Go beyond just looking up words.
Remember them forever with VocabTrainer.

Start training