METATrading Academy

Options and futures

MTMroz ka profit-loss settle karna

Mark-to-market: the daily process of settling the profit or loss on open futures positions in cash based on that day's closing price.

Mark-to-market, or MTM, means valuing an open position at the current market price and settling the difference in cash every day. In futures, the exchange does this at the close: if your position gained, cash is credited to your account; if it lost, cash is debited from your margin. Suppose you bought one SBI futures lot of 750 shares at ₹800 and the futures close at ₹790. The MTM loss is ₹7,500, debited that evening, even though you have not sold. If SBI closes at ₹805 the next day, ₹11,250 is credited. This daily settlement is why futures losses can trigger margin calls before you ever exit. Brokers also show an MTM figure on intraday and options positions as an unrealised profit or loss. Understanding MTM stops the common shock of finding the account balance down after an ordinary red day.

Lessons that use this term