In this paper, we consider Rayleigh fading based cooperative communication system with AaF (Amplify and Forward) relaying using multiple relays. We take spectrally efficient two-way model of cooperative communication terminals and formulate performance evaluation framework in terms of SER (Symbol Error Rate). We not only consider fading channel for this performance evaluation but also consider the effect of relay terminal location into our model which does not require any CSI (Channel State Information) at transmitting nodes. We have proposed power allocation framework for these nodes and analytically derived SER performance results. We have numerically evaluated this framework for power optimization as well as minimizing required SER. Significant performance improvement as compared with equal power sharing among the cooperating terminals is achieved using our proposed framework. It is shown that virtual cooperative antenna configurations is able to demonstrate up to 3dB gain as compared with co-located antenna configurations. Thus incorporating relay location information for performance evaluation results significant power savings