The value date is the day on which an FX trade settles — when the two currencies actually change hands. It is distinct from the trade date, which is when the deal is agreed. For most currency pairs the spot value date is two business days after the trade date (T+2), and forward value dates are measured out from that spot date.
How Is the Value Date Determined?
The standard spot value date is two good business days after the trade date. A good business day requires the payment systems in the home centers of both currencies to be open — for AUD/USD, that means both Sydney and New York.
If the normal spot date falls on a day a relevant clearing system is closed, the value date rolls forward. In particular, if the date lands when the New York US dollar clearing system is shut, the whole value date defers by a day.
Are There Exceptions to T+2?
Yes. A handful of pairs settle one business day after the trade date (T+1) rather than T+2 — most notably USD/CAD, along with some others such as USD/TRY and USD/RUB.
Forward dates also follow conventions: if the spot value date is the last working day of a month, the forward value date is the last working day of the relevant forward month, known as the end/end rule.
Why Do Value Dates Matter?
The value date defines exactly when settlement risk and cash flows occur, which is central to operations and to pricing. Forward and swap rates are all built by adjusting spot for the days between value dates.
Positions can also be rolled to a new value date using a short-dated swap such as tom/next — for instance, to avoid taking delivery on the original date.
Related Terms: Spot Rate, Swap Points, Trade Date, Tom/Next, T+2 Settlement. See the full glossary for more.
This is educational content, not financial or trading advice.