Skip to main content
Learn

How Does MTM Impact the Cash Flow of a Futures Trader?

It creates a daily, fluctuating cash flow (inflows/outflows) that requires careful liquidity management.
Greeks.Live21.11.25

How Does MTM Impact the Cash Flow of a Futures Trader?

MTM creates a daily, fluctuating cash flow for the futures trader. A profitable day results in a cash credit (inflow), and a losing day results in a cash debit (outflow).

This means the trader must manage their liquidity carefully, as they could face unexpected margin calls requiring immediate cash injection, even if their overall hedge is expected to be profitable in the long run.

Is the Cash Flow Impact of MTM the Same for Both Long and Short Positions?
Define “Intraday Liquidity Risk” in a T+0 Environment
How Does the Daily Mark-to-Market Process Work for Futures Contracts?
How Does MTM Reduce Systemic Risk in the Financial System?

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.