Is MTM Unique to Cash-Settled Futures, or Does It Apply to Physically-Settled Ones Too?

The Mark-to-Market (MTM) process applies to all standardized futures contracts, whether they are cash-settled or physically-settled. MTM is a core risk management feature implemented by the clearinghouse for all futures.

The difference in settlement only occurs at the contract's expiration; until then, both types of contracts are subject to the same daily margin adjustments based on market price changes.