Risk & Margin

Mark-to-Market (MTM)

The daily process of revaluing an open F&O position based on that day's closing price, recognizing profit or loss regularly rather than only at close.

Mark-to-market (MTM) is the process of revaluing your open Futures position at the end of each trading day, based on that day’s closing price. Gains or losses are recognized daily, rather than only when the position is eventually closed — a meaningful difference from simply holding a stock.

See how MTM fits alongside margin requirements in Margin in F&O Trading Explained: SPAN and Exposure Margin.