HomeDefinitionsCompareDebt Counterparty riskThe financial definition for 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. Similar MatchesCounterpartyCounterpartyParty on the other side of a trade or transaction. Receive fixed counterpartyReceive fixed counterpartyThe transactor in an interest rate swap who receives payments based on the fixed rate and makes payments based on the floating rate. Receive floating counterpartyReceive floating counterpartyThe transaction in an interest rate swap who receives payments based on the floating rate and makes payments based on the fixed rate. Click to compare definitions of Counterparty risk Click to view definitions beginning co |