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Glossary › mark-to-market

Trading glossary · advanced

mark-to-market

Every day, gains and losses on buy-it-later deals are counted, and money moves between accounts right away.

The fuller meaning

The daily revaluation of futures positions at the settlement price: the clearing house moves gains and losses between long and short accounts each day. Losses come out of margin in cash immediately, which can trigger margin calls long before expiry.

mark-to-market, also called daily settlement.

Related words

at the money · backtest · backwardation · basis · call option · contango · data snooping · delta · edge · entry trigger