value date

In a currency transaction, the value date (VD) is the date at which the trade is settled and one currency is exchanged against another. In a spot market transaction the most common value date is two days after the transaction was agreed If the value date is more than 48 hours away from the day […]

vanilla currency options

A vanilla currency option is a financial derivative instrument that gives the buyer the right —but not the obligation— to buy (in a ‘call’ option), or to sell (in a ‘put’ option) the contracted currency at a set price or exchange rate (known as the ‘strike price’), on a predetermined expiration date. The seller of […]