Trading Partner Agreement

AAA

DEFINITION of 'Trading Partner Agreement'

An agreement drawn up by two parties that have agreed to trade certain items or information to each other. The agreement outlines the terms of the trade or trading process, such as compensation for the shorted party in an inequitable trade. Trading Partner Agreements are often tailored for electronic transactions.

INVESTOPEDIA EXPLAINS 'Trading Partner Agreement'

Trading Partner Agreements may include a list of duties and responsibilities to be allocated to each party in the trade. They could also specify the terms of delivery or receipt of the goods or services. There is no single formal format for this type of agreement, or specific required content for them.

RELATED TERMS
  1. Cash Flow

    1. A revenue or expense stream that changes a cash account over ...
  2. Income Statement

    A financial statement that measures a company's financial performance ...
  3. Trade

    A basic economic concept that involves multiple parties participating ...
  4. Publicly Traded Partnership - PTP

    A business organization owned by two or more co-owners, that ...
  5. Option Agreement

    1. A signed agreement between an investor who is seeking to open ...
  6. Confidentiality Agreement

    A legal agreement between two or more parties that is used to ...
Related Articles
  1. Managing Income During Retirement
    Budgeting

    Managing Income During Retirement

  2. Trade On Support For The Best Exit Strategy
    Active Trading Fundamentals

    Trade On Support For The Best Exit Strategy

  3. Top 7 Questions About Currency Trading ...
    Forex Education

    Top 7 Questions About Currency Trading ...

  4. What Is The World Trade Organization?
    Economics

    What Is The World Trade Organization?

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center