FX · FX specialist topics · lesson 3 of 9 · 8 min read · David Alexander
Value dates, and why one night a week costs three
value date
The day a currency trade actually settles, which for spot FX is two business days after it is struck. A position held overnight is not settled and then reopened - it is rolled forward to a new value date, and the price of that roll is the swap. The convention also explains why one night each week is charged three times.
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