What is mark-to-market?Mark-to-Market
Profit and loss is calculated at the settlement price every trading day and actually moved into or out of your margin account.
Learn “mark-to-market” in an animated lesson
- Futures BasicsDelivery and Settlement Price
How does a contract wrap up at expiry: physical delivery, cash settlement, or closing early? And how is each day's settlement price worked out?
- Futures BasicsMargin and Mark-to-Market
Futures only require part of the value as margin, but P&L is settled at the settlement price every day at the close. Drop below maintenance margin and you must top up.
- Hedging StrategiesThe Hidden Costs of Hedging: Rolling and Margin
Roll near-month futures to hedge for a whole year and the price risk is locked on paper, but every roll costs money and margin needs cash. A hedge can also die from cash flow.
Related terms
See how “mark-to-market” works for yourself with an animation you can drag and play.
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