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One defines "target month" to lie x months forward from spot if time to expiry is x months; e.g., if in February, and the time to expiry is three months, the target month is May.

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Time to expiry is usually quoted either as "overnight" or in terms of a number of days, weeks, months or years.

In general, the expiry date can be any weekday, even if it is a holiday in one, or both of the currencies, except 1 January.

For a trade with time to expiry of y months, the expiry date is found by first calculating the spot date, then moving forward y months from the spot date to the delivery date.

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The Foreign exchange Options date convention is the timeframe between a currency options trade on the foreign exchange market and when the two parties will exchange the currencies to settle the option.

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There are differing conventions depending on the period involved.

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