What is a value date?
A value date is the day a trade settles, meaning the day the money or the asset actually changes hands. It is also called the settlement date.
The trade date is the day you agree the deal. The value date is the day it is completed. In many markets these are different days.
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Value date meaning in forex
In spot forex between banks, the value date is the standard settlement day set by market convention for that currency pair. It falls a fixed number of business days after the trade date, and the number depends on the pair.
Hypothetical example. A bank buys EUR/USD on a Monday. With no holiday that week, the spot value date is Wednesday. On Wednesday the bank delivers US dollars and receives euros. If Wednesday is a holiday in the United States or the euro area, the value date moves to the next business day open in both.
Formal points for experienced readers:
- A valid value date must be a business day in the countries of both currencies. For most pairs it must also avoid US holidays, because US dollar settlement runs through US banks.
- Value today and value tomorrow are shorter settlement dates than spot. Tom/next is a swap from the next business day to the spot date.
- A forward contract has a value date later than spot. The price difference is quoted in forward points, which come from the interest rate gap between the two currencies (see covered interest parity).
- A broken date is a non-standard forward value date between the usual tenors.
Value date and rollover in CFD trading
Retail spot forex CFDs are not delivered. A position held through the daily rollover has its value date moved forward, and you pay or receive a swap for it. Because spot value dates skip weekends, one weekday rollover, often Wednesday for forex, covers the weekend and carries a larger swap. Leveraged CFD and forex trading can lose money fast, and swap costs add to that over time.
Where the term appears
| Place | What it shows |
|---|---|
| Bank statements | A "value date" column next to the posting date; interest is usually counted from the value date |
| Interbank and forward confirmations | Trade date, value date, amounts in each currency |
| Bond trades | Settlement date, used to calculate accrued interest |
| Broker account statements | Open time and close time; the value date usually is not shown for CFDs |
| News on central bank decisions | "With effect from" a date: the day a new rate starts to apply |
Edge cases
- Posting date vs value date. A bank can show a deposit on your statement one day and give it value on another day. Interest and available balance can follow the value date.
- Holidays. A holiday in one currency's country moves the value date, and can change the swap on that rollover.
- Month end. If the forward value date would fall in the next month, conventions often move it back to the last business day of the current month.
Related terms
- Clearing and settlement
- Cash vs physical settlement
- Expiry date
- Ex-dividend and record date
- Counterparty
- Trading glossary
Frequent questions
Is value date the same as settlement date?
Yes. Both mean the day the exchange of money or assets is completed.
Is value date the same as trade date?
No. The trade date is when the deal is agreed. The value date is when it settles, and it is often later.
Why does my bank statement show a different value date?
The posting date is when the bank records the entry. The value date is when the funds count for interest and balance purposes.
Do I get delivery of currency in forex CFDs?
No. CFDs are settled in cash. Open positions are rolled forward, and a swap is charged or paid at each rollover.