The magnificent art of using word play, opinions, exaggeration, irony, sarcasm, and other comedic themes to (playfully) humiliate, make fun of, and laugh at your friends. This word is most commonly used in Britain, but 'Banter' is used around the world.
Joe: Your dick is so small!
Steven: Your mum didn't seem to mind it last night

Both: Banter m8 yh init
by Domesh August 29, 2014
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A word used to describe the teasing and pisstaking which occurs between mates, usually harmless.

However, the past couple of years the word has been hijacked by Justin Bieber lookalike student "LAD" twats who use it to describe anything humorous that occurs. These people are also known as chino wankers, annoying morons and people who need to use a dictionary now and again.
What banter is:

"You alright Mike? You seem miles away, you're not busy thinking of Tanya are you? Don't even lie, you proper fancy her, you div!"

What banter isn't:

"LOL LAST NIGHT DAVE WALKED INTO A LAMPPOST! EPIC BANTER LOL! WHAT A LAD!"
by chinosareugly March 15, 2013
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Verbal sparring that's fundamentally friendly, especially needed to deflate the egos of gloating friends
A banterous initiation to said friend:

"I wonder if your ass gets jealous of all the shit coming out of your mouth"
by bobzilla November 1, 2012
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A humerous and witty conversation, statement or remark. Coming back into fashion due to today's youth using it to mean anything remotely humorous, even to the most crude sense of humour.
What an excellent bit of banter!-div after beating a deer to death with a spoon
by Choc761 December 19, 2014
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A term now applied to what was previously known as "Conversation" (if explicitly referred to at all) by a generation whose aspirations have been systematically lowered (due to endless hours of social networking and reality TV) to the point that events which occur naturally, everyday, everywhere are now praised and honoured as achievements.
"And then I put the pen back where I got it from"

"Lol BANTER"

*high five*
by Ehansen The Third January 3, 2012
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A word used to cover up what would usually be classed as completely inappropriate behaviour, usually ends in on of the parties being irritated beyond comparison.
Boy: Go fuck yourself, I hope you die in a hole.
Girl: Hey!
Boy: Calm down, it's just banter.
by Noremac Giarc Nalla July 10, 2011
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