How Is the 'Marking-to-Market' Process Performed for Futures Contracts? ⎊ Path

How Is the ‘Marking-to-Market’ Process Performed for Futures Contracts?

Marking-to-market (MTM) is the daily process of adjusting the value of a futures contract to its current market price. At the end of each trading day, the profit or loss is calculated based on the difference between the contract's previous day's settlement price and the current day's settlement price.

This profit or loss is then credited or debited to the trader's margin account as variation margin.

What Is the Practical Difference between a Maintenance Margin Call and a Variation Margin Call?

What Is the Difference between Initial Margin and Variation Margin (Maintenance Margin)?

How Does the “Daily Settlement” Process Work in Futures Trading?

What Is the Difference between ‘Initial Margin’ and ‘Variation Margin’?

What Is the Purpose of “Variation Margin” in MTM?

What Is “Variation Margin” and How Is It Related to MTM?

How Does Variation Margin Settlement Affect a Trader’s Cash Balance Daily?

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