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counterparty risk
(redirected from counter party)

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Counterparty Risk
The risk to each party of a contract that the counterparty will not live up to their contractual obligations.

Notes:
In most financial contracts, counterparty risk is known as default risk.


Counterparty risk
The risk that the other party to an agreement will default. In an options contract, the risk to the option buyer that the option writer will not buy or sell the underlying as agreed.

counterparty risk
The risk that a party to a transaction will fail to fulfill its obligations. The term is often applied specifically to swap agreements in which no clearinghouse guarantees the performance of the contract.

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The holder of a put onion has the right to sell the stock to a counter party at a set price in the future; a call represents the right to buy at a set future price.
Signing a second PPA with Direct Energy, the counter party for the first phase of AES's Buffalo Gap project, furthers our partnership with one of the largest purchasers of green electricity in Texas.
Triple Point Technology, the leading global supplier of cross-industry software platforms for the supply, trading, marketing and movement of commodities, announced today that Commerce Energy Group (AMEX: EGR) will deploy Triple Point's Commodity XL(TM) next-generation software solution to manage its physical and financial supply transactions, risk management, and counter party invoicing and settlement for power and natural gas markets in North America.
 
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