Counterparty

What is Counterparty?

Counterparty meaning The opposite party in a bilateral agreement, contract, or transaction, such as aswap. In the retail foreign exchange (or Forex) context, the party to which a retail customer sends its funds; lawfully, the party must be one of those listed in Section 2(c)(2)(B)(ii)(I)-(VI) of the Commodity Exchange Act.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary