Trading Partner Agreement

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.

BREAKING DOWN '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.

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RELATED FAQS
  1. How are the profits split between a general partner and a limited partner in a real ...

  2. Which terms should be included in a partnership agreement?

    Understand what specific terms should be included in a business partnership agreement and how each affects the partners in ... Read Answer >>
  3. Under what circumstances would someone enter into a repurchase agreement?

    Learn when investors want to enter into a repurchase agreement, such as to gain quick access to liquidity and enjoy flexibility ... Read Answer >>
  4. What is each party's role in a reverse repurchase agreement?

    Learn about the role of each party in a reverse repurchase agreement transaction, and find out why it's different if the ... Read Answer >>
  5. What is the primary use of reverse repurchase agreements?

    Discover how the Federal Reserve utilizes reverse purchase agreements for the primary purpose of offsetting temporary shifts ... Read Answer >>
  6. What tax implications are there for parties involved with a reverse repurchase agreement?

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