What is Marking to Market MTM?

What is Marking to Market MTM?

Each day, your contracts and trades are adjusted to align with the prevailing market price, a process known as Marking to Market (MTM).

When initiating a futures contract, the MTM on the entry day reflects the difference between your initial value and the closing price of that day. For positions retained overnight, it represents the difference between the current market price and the previous day's closing price.

Utilizing the MTM mechanism on the 5paisa platform ensures that your positions accurately reflect market fluctuations, aiding in effective risk management and decision-making.



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