The value date is a future date at which a transaction becomes effective.
Value date for trades
For most security transactions, a two-day settlement date applies, commonly referred to as T+2. Other abbreviations would include T+1, T+2, and T+3. To elaborate, if you were to make a trade, for example, a purchase of 100 shares, the transaction date would be today, when the actual trade occurs. The value date represents the time at which ownership of your shares would be transferred. For shares many would be T+2 or T+1, however, it is important to note that the value date varies depending on the type of security/asset class.
Value date for bank transfers
For bank transfers, the value date represents the date at which the funds are released.
If you make a withdrawal on 14 May and see the value date shows 15 May, then the funds will be released on 15 May.
If you sell a position and withdraw all the proceeds from the sale of this position before the trade's value date, the withdrawal will only be processed after the value date of the trade.
For example, if you have 1000 USD as cash on your account and sell your shares for another 1000 USD and request to withdraw 2000 USD, the earliest this withdrawal could be processed is the value date on the trade you made on your shares.
If you withdraw part of the proceeds from the sale of the position before the value date, the funds could be released but you may be charged interest before the trade really settles on the value date.
Read more on how long does a transfer take
Where to see Value date?
When a trade or transfer on platform is executed, you will see a platform notification right away that contains the value date.
If you are uncertain about the value date of the trade you have made, you can find it in multiple places on the platform.
Order Blotter - It locates beside the Positions and Orders tab.
Account statement - You can find it under Account reports
Portfolio > Transactions > Choose the (cash or trade) transaction and click More
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Important: settlement occurs only during working days, so a value date on a weekend/holiday is not possible. |