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Is there a limit to how many counter offers can be made while doing a trade ? I was just in the middle of a trade, we both countered, and when I went to " accept" the latest proposal, my only  option was to " withdraw ". 

I ended up " withdrawing " and doing a new proposal based on his last counter.

I tried the FAQ section, but this situation is not addressed.

I'd be interested in knowing the answer.  I think one Counter on both sides is the most I've been party to.

I've countered more than once with no problem. You shouldn't be able to withdraw an offer that has been countered to you. You can counter or decline or accept. 

Thats what I thought, unless I did something wrong .

You must have been the last to counter. Once your offer has been made, the only choice you have is to withdraw it. Your trading partner would need to counter before you counter again.

That is what happen to me.    I pushed the wrong button counter vs accept) and could not accept the deal.  Other trader had to resent the same offer.