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.
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