Forex Slang

Forward Settlement Date

The future date when a forward forex contract will settle and currencies will be exchanged.

Definition

A forward settlement date is the agreed-upon future date when a forward foreign exchange contract will be settled. Unlike spot transactions (T+2), forward contracts can settle on any agreed date in the future, from a few days to several years ahead.

How It Works

Agreed at contract inception
Can be any business day after spot date
Standard tenors: 1W, 1M, 2M, 3M, 6M, 1Y
Non-standard dates are called "broken dates"

Trading Tips

Forward rates include interest rate differentials

Longer dates typically have wider spreads

Match settlement date to your actual currency need

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