ACT/365
ACT/365 is a day count convention which calculates the actual days in a time period, over the actual number of days in a calendar year.
In a normal year, this will be 365 days.
In a leap year it is 366 days.
The day count convention should always be checked and confirmed expressly if appropriate before transacting.
Major currencies which usually use an ACT/365 day count convention include:
- GBP, INR, HKD, PLN, SGD and ZAR.
Particular care must be taken where the day count convention differs between domestic markets and non-domestic markets.
ACT/ACT
The ACT/365 convention is also known as ACT/ACT, because the denominator is the actual number of days in the year.
The ACT/365 - or ACT/ACT - convention is also sometimes known as ACT/365 actual, or ACT/365 A.
ACT/365 fixed
The ACT/365 convention, described above, should not be confused with ACT/365 fixed.
Under the ACT/365 fixed convention, the number of days in the conventional year is fixed at 365 in all years (including leap years).
See also
