Definition
Counterparty
The other side of your deal, the party you are contracting with.
In Depth
In any agreement, each side is the counterparty to the other. You sign a contract with someone, and to you they are the counterparty, while to them you are. The word shows up constantly in business and finance as shorthand for "the party on the other end of this transaction."
Consistent across the US, UK and EU. It is general commercial and legal vocabulary with the same meaning in all three.
Sources
- Merriam-Webster Dictionary - a party to a financial transaction. Official Guidance merriam-webster.com/dictionary/counterparty