Definition

The other person or group involved in a financial deal or agreement.

Example

In a loan agreement, the bank is the lender and the borrower is the counterparty.

Conversation

Have you heard about the new counterparty in the deal?

Yeah, I read they have a good reputation.

I hope they can deliver on time; a reliable counterparty is crucial.

Definitely! It really makes a difference in the long run.

Synonyms & Antonyms

Root Explanation

Counterparty → It is formed from "counter-" (meaning opposite or against, derived from Latin *contra*) and "party" (from Old French *partie*, meaning a part or side). The word refers to a party that is on the opposite side of a transaction or agreement.

Memory Tip

Think of 'counter-' meaning opposite and 'party' as a side in a deal — a counterparty is simply the opposite side in a transaction.

Visually Confused Words