counterparty
/ˈkaʊn.təˌpɑː.ti/ IELTSAcademic
noun
The other person or company in a contract, deal, or financial agreement. It is a formal word used in business, law, and finance.
- Our counterparty signed the agreement yesterday.
- The bank checked the counterparty's credit risk.
- Each counterparty must meet the contract terms.
Adinary Nuance
Counterparty is more specific than partner, customer, or client. It means the other side in a deal, and it is common in legal and financial writing. It sounds formal and exact, so writers use it when the relationship is contractual, not personal.
In other languages
- Vietnamese
- bên đối tác
- Spanish
- contraparte
- Chinese
- 交易对手
- Japanese
- 相手方
- Korean
- 상대방
Etymology
Counterparty comes from counter- plus party. It appeared in English in legal and business use, especially for contracts and finance.
Common phrases
counterparty riskcounterparty exposurethe counterparty to a contract
Synonyms
Related words
Frequently asked questions
- Is counterparty a formal word?
- Yes. It is formal and common in business, legal, and finance writing.
- What is the difference between counterparty and partner?
- A partner works with you. A counterparty is the other side in a deal or contract.
- Can I use counterparty in everyday English?
- You can, but it may sound too technical in casual conversation.
- What does counterparty risk mean?
- It means the risk that the other side will not pay or perform as agreed.