Counterparty

Pronunciation: /ˈkaʊntərˌpɑːrti/

Definitions of counterparty

noun a person or entity that is a party to a financial transaction

Example Sentences

A1 A counterparty is someone you make a deal with.

A2 When trading stocks, it's important to know who your counterparty is.

B1 The bank acts as a counterparty in many financial transactions.

B2 Before entering into a contract, it's crucial to assess the creditworthiness of your counterparty.

C1 In complex derivative transactions, it is essential to have a clear understanding of the risks associated with each counterparty.

C2 The legal team thoroughly reviewed the agreement to ensure all obligations and liabilities of each counterparty were clearly defined.

Examples of counterparty in a Sentence

formal The bank requires a credit check on each counterparty before entering into a financial agreement.

informal Make sure you trust your counterparty before making any deals with them.

slang I wouldn't do business with that shady counterparty if I were you.

figurative In chess, your opponent is your counterparty on the board.

Grammatical Forms of counterparty

• plural: counterparties
• comparative: more counterparties
• superlative: most counterparties
• present tense: counterparties
• future tense: will be counterparties
• perfect tense: have been counterparties
• continuous tense: are being counterparties
• singular: counterparty
• positive degree: counterparty
• infinitive: to be a counterparty
• gerund: being a counterparty
• participle: counterparty

Origin and Evolution of counterparty

First Known Use: 1601 year

Language of Origin: Latin

Story behind the word: The word 'counterparty' originated from the Latin word 'contra' meaning against, and 'partem' meaning part or party.

Evolution of the word: Originally used in a legal context to refer to the other party in a contract or transaction, the term 'counterparty' has evolved to be commonly used in finance and business to describe the other party in a financial transaction or agreement.