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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