Definition, Meaning & Synonyms
counterparties
Noun
/ˈkaʊntərˌpɑrtiˌiz/
Definition
Entities that participate in a financial transaction or agreement.
Examples
- A bank may negotiate with various counterparties to ensure the best deal.
- In a derivatives contract, both parties are considered counterparties.
- The firm conducts due diligence on all its counterparties to mitigate risk.
Meaning
Counterparties are individuals or groups that are involved in a contractual agreement, commonly within finance, where each party agrees to fulfill specific obligations.
Synonyms
- Participants
- Contracting parties
- Partners
