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How Does the Concept of “Mark-to-Market” Relate to the Settlement Price?

MTM is the daily valuation of a position using the settlement price to realize profits and losses in cash.
Greeks.Live24.11.25

How Does the Concept of “Mark-to-Market” Relate to the Settlement Price?

Mark-to-market (MTM) is the accounting process of valuing a position based on its current market price, which is the daily settlement price. For futures, MTM means that profits and losses are realized daily in cash, not just at expiration.

The settlement price acts as the reference point for this daily calculation of changes in contract value.

What Is the Difference between MTM and Final Settlement?
How Does Daily Settlement Affect the Cash Flow for Futures Traders?
Does the Exercise of a Physically-Settled Option Require MTM?
How Does MTM Differ from the Settlement Process for a Forward Contract?

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