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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:

CoinEx became the largest foreign counterparty to Iran’s Nobitex by 2024, replacing Binance, which the U.S. penalized.

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

It signals to every counterparty transacting with a designated party that it could be next, inducing it to sever its ties to Iranian-linked finance.

From The Wall Street Journal Jun. 9, 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

America’s counterparties might be starting to think differently about the risks of dollar dependency.

From Barron's May 27, 2026

Starting with a large Microsoft deal, CoreWeave has leveraged customer contracts with secure counterparties to borrow money to build expensive data centers.

From Barron's Feb. 26, 2026

The WSJ reported, citing people familiar with the matter, that the New York Fed had reached out to potential trading counterparties at the direction of the Treasury Department on Friday for so-called rate checks.

From The Wall Street Journal Jan. 26, 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

“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

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