The typical counterparties in a derivative contract are the:

Question

Quizplus · Accepted Answer

The long (buyer) and the short (seller) are the typical counterparties in a derivative contract. A derivative is a contract between two parties that derives its value from the performance of an underlying asset, such as a stock, commodity, or currency. The long (buyer) is the party that agrees to buy the underlying asset at a future date, while the short (seller) agrees to sell the underlying asset at that same future date.

The Typical Counterparties in a Derivative Contract Are The