What is mark-to-market (MTM) in futures?

Mark to Market (MTM):

In F&O, Mark to Market means settling your profit or loss on a daily basis as per the market’s closing price.

• If the market moves in your favor → profit is added to your account on the same day.
• If the market moves against you → loss is deducted from your account on the same day.

This way, your position is adjusted daily, instead of waiting till the contract expiry.

Example:

• You buy Nifty Futures at ₹20,000.
• Day 1 closing price = ₹20,100 → Profit of ₹100 will be credited to your account.
• Next day closing price = ₹19,950 → you lose ₹150, loss will be debited from your account..

👉 To Summarize: MTM settles daily gains and losses, keeping your account aligned with the current market value.