Value date

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. Also referred to as "valuta".

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For example, in the case of savings bonds, the interest is compounded semi-annually so the value date is every six months. This removes any uncertainty for investors because their calculations of interest payments will be the same as the government's.

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Banking: official date when money is transferred, that is, becomes good funds to the depositor. The value date differs from the entry date when items are received from the depositor, since the items must then be forwarded to the paying bank or otherwise collected. The term is used mainly with reference to foreign accounts, either maintained in a domestic bank or maintained by a domestic bank in foreign banks. See also Float.

Eurodollar and foreign currency transactions: synonymous with Settlement Date or Delivery Date, which on spot transactions involving North American currencies (U.S. Dollar, Canadian dollar, and Mexican peso) is one business day and on spot transactions involving other currencies, two business days. In the forward exchange market, value date is the maturity date of the contract plus one business day for North American currencies, two business days for other currencies. See also Forward Exchange Transaction; Spot Market.

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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 Terms, value date is the delivery date of funds traded. For spot transactions, it is normally on spot transactions two days after a transaction is agreed upon. In the case of a forward foreign exchange trade, it is the future date

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