Value
date in finance is the date when the value of an asset that fluctuates
in price is determined. The value date is used when there is a
possibility for discrepancies due to differences in the timing of asset
valuation. It usually applies to forward currency contracts, options and
other derivatives, interest payable or receivable. In accounting, value
date is the date when the entry to an account is considered effective.
In banking,
value date is the delivery date of funds traded. For spot transactions
it is the future date on which the trade is settled. In the case of a
spot foreign exchange trade it is normally two days after a transaction
is agreed upon. A future date used in determining the value of a product
that fluctuates in price. Typically, you will see the use of value
dates in determining the payment of products and accounts where there is
a possibility for discrepancies due to differences in the timing of
valuation. Such products include forward currency contracts, option
contracts, and the interest payable or receivable on personal accounts.
