Skip to main content
Learn

Explain the Process of “Marking-to-Market” in Futures Contracts

Marking-to-market is the daily adjustment of a futures contract's value to its current market price, realizing P&L and transferring variation margin.
Greeks.Live23.11.25

Explain the Process of “Marking-to-Market” in Futures Contracts.

Marking-to-market is the daily process where the futures contract's value is adjusted to its current market price, typically at the close of the trading day. All profits and losses are realized daily, and the variation margin is calculated and transferred between the buyer's and seller's margin accounts.

This ensures that the financial obligations are settled daily, minimizing credit risk.

What Is the Practical Difference between a Maintenance Margin Call and a Variation Margin Call?
Define ‘Initial Margin’ versus ‘Variation Margin’ in Derivatives Collateral
What Is “Marking-to-Market” in Futures Trading?
What Is the Difference between Initial Margin and Variation Margin (Maintenance Margin)?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.