Mark to Market

This Issue in United States

Mark to Market

Concept of Mark to Market in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The process of revaluing an OTC (over the counter) or exchange traded product each day. Mark to market gains or losses are the difference between the closing price on the previous day against the current market price. For exchange traded products the mark to market is used to determine the variation margin.

Resources

See Also

• Derivatives Contract

Concept of Mark-to-Market in Futures Trading

In this context of financial law, the following is a definition of Mark-to-Market: Part of the daily cash flow system used by U.S. futures exchanges to maintain a minimum level of margin equity for a given futures or option contract position by calculating the gain or loss in each contract position resulting from changes in the price of the futures or option contracts at the end of each trading session. These amounts are added or subtracted to each account balance.