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General TradingV
Value Date
The date on which a financial transaction is settled and the exchange of currencies or securities actually takes place. In the spot forex market, the standard value date is two business days after the trade date (T+2), while some currency pairs like USD/CAD settle on T+1. Understanding value dates is important for managing cash flows, calculating interest accruals, and ensuring timely settlement of obligations.
Example
“The EUR/USD trade executed on Monday had a value date of Wednesday, meaning the actual exchange of euros and dollars would settle two business days later.”