Definitions for "Counterparty"
Keywords:  forex, whom, swap, deal, transacts
The other party in a forex deal. In online spot forex, the counterparty is the market maker.
The customer or bank with whom a foreign exchange or over-the-counter options deal is made. The term is also used in interest and currency swaps markets to refer to a participant in a swap exchange.
Another party in an agreement. Counterparty risk is the chance that the other party will default.
Keywords:  countersignature
Keywords:  otc, outlined, retail, bound, dealer
The entity on the opposite side of the contract that is bound to perform on the legal obligations outlined in that contract and associated agreements.
The counterparty is the person who is on the other side of an OTC trade. For retail customers, the dealer will always be the counterparty.