The value date is a future date at which a transaction becomes effective. Since there are multiple applications of value date as a term, it is important to distinguish between:
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 it would be T+2, however, it is important to note that the value date varies depending on the type of security/asset class. If you are uncertain about the value date of the trade you have made, you can always check it under the Position details by clicking the 'i' icon at the bottom of the Platform view.
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Important: settlement occurs only during working days, so a value date on a weekend/holiday is not possible. |
Value date for bank transfers
For bank transfers, the value date represents the date at which the funds are released.
If you sell a position and withdraw the proceeds from the sale of this position before the trade's value date, the withdrawal will be processed but you will be charged an interest. This is because you are withdrawing money that has not been released as yet. To avoid paying this interest, wait for the value date to sell the position.