What is a Value Spot?
The value spot is the common designation for the time frame that is usually employed to describe the period between the creation of a contract and the actual remittance of payment that completes the terms of the contract. Often used with spot trades, value spots allow the seller to arrange payment in the form required by the seller, and to deliver the payment within the agreed upon amount of time. The typical value spot is two calendar days from the date that the transaction begins. The value spot is considered to be the standard time frame for the successful completion of transactions that involve a spot trade. Many financial institutions refer to a value spot as a T+2 transaction. This is essentially understood to be the date of trade plus two additional days for completion. Working with a value spot is often the preferred method of trading for investors and sellers who deal with spot trades. The two day time frame provides enough time to allow for the preparation of all necessary do
