Mark-to-market
Also called: MTM, daily settlement
The daily settlement of gains and losses on a futures position, using that day's settlement price.
Losses are taken out of the margin account each day as real cash, not left as paper losses until expiry. If the account falls below the required level, the trader receives a margin call.
Learn more in these lessons
- Futures margin and mark-to-marketHow does futures margin work, and why can you lose more than you put in?
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