Mark To Market
Mark to market (MTM) is the daily revaluation of open derivative positions to reflect current market prices, with resulting gains and losses credited or debited to the trader's margin account.
Example: A trader holding a USD/JPY futures contract sees the contract value revalued at the end of the trading day as the USD/JPY price moves from 110.50 to 111.20, resulting in a positive MTM adjustment added to the margin account.
💬 Comments