Counterparty
The other side of your trade: whoever is selling when you buy, or buying when you sell.
In plain English
The other side of your trade: whoever is selling when you buy, or buying when you sell.
Every trade needs a counterparty. In retail forex it is often your broker or a bank the broker deals with.
Counterparty risk is the danger that they cannot pay what they owe. It is why regulation, segregated client money and clearing matter.
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