What Is the Process of 'Marking to Market' for a Futures Contract? ⎊ Path

What Is the Process of ‘Marking to Market’ for a Futures Contract?

Marking to market is the daily process of valuing a futures contract at its current market price. The resulting gain or loss is then credited to or debited from the clearing member's account as variation margin.

This ensures that the exposure on the contract is settled daily, preventing large accumulated losses.

How Does the Clearing House Manage the Daily Settlement Process for Futures?

How Does Marking to Market Reduce Counterparty Risk?

How Does the Frequency of Marking-to-Market Impact Margin Requirements?

What Is the Difference between Initial Margin and Variation Margin for Futures?

How Does the Concept of “Marking-to-Market” Relate to Variation Margin?

Define ‘Initial Margin’ versus ‘Variation Margin’ in Derivatives Collateral

How Does “Marking-to-Market” Work in the Context of Variation Margin?

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

Glossar

Marking to Market

Valuation ⎊ Marking to market within cryptocurrency, options, and derivatives represents a continuous assessment of the current fair value of an asset or contract, reflecting prevailing market conditions.