Counterparty Definition

A counterparty is the other party involved on the opposite side of a financial transaction.

What is a Counterparty?

In trading, the counterparty may be a broker, market maker, or another market participant depending on how the trade is executed.

Counterparty risk refers to the possibility that the other party fails to meet its obligations.

When a trader buys a CFD from a broker, the broker acts as the counterparty to that trade.

A candlestick chart is a price chart that displays the open, high, low, and close for a period using a body and wicks.

A capital gain is the profit realized when an asset is sold for more than its original purchase price.

Capitalization, or market capitalization, is the total market value of a company's outstanding shares.