The act of revaluing the securities borrowed/loaned and collateral posted in a repo or securities lending transaction to current market values. This is either done daily of at a suitable interval agreed upon by the parties to the transaction.
The process whereby the book value or collateral value of the security is adjusted to reflect current market value.
To debit or credit on a daily basis a margin account based on the close of that day's trading session.
Adjust the value of an asset or liability to reflect the current market price. In spread betting this is done in real-time. For example if you buy £1 of the FTSE 100 spread bet at 4,300 first thing in the morning, and by 2pm it is trading at 4,300 you will have deposited in your account £100 in marked-to-marked profits although the position has not yet been closed. Vice-versa for marked-to-market losses. More information on this topic in the Margin section - click here
The process of recalculating the value of open positions in an account, assuming all open positions were liquidated.
a method of accounting for an asset based on the calculation of its current market value
adjust the value of a portfolio to current market prices.
The daily adjustment of margin accounts to reflect profits and losses.
Evaluating an open position on the basis of current market price, usually to assess the need for a variation margin (qv).
The trading practice of automatically re-evaluating a customers outstanding position according to the current price and subsequent price movements - in other words so that the customers balance always reflects the most recent price. This can lead to margin calls.
Traders account for their positions in two ways: accrual or mark-to-market. An accrual system accounts only for cash flows when they occur, hence, it only shows a profit or loss when realized. The mark-to-market method values the trader`s book at the end of each working day using the closing market rates or revaluation rates. Any profit or loss is booked and the trader will start the next day with a net position.
Regular periodic revaluation of any financial asset or liability by reference to its current fair value, the profits and losses so produced being recognised for tax purposes.
The daily adjustment of an account to reflect accrued profits and losses often required to calculate variations of margins.
The regular adjustment of an outstanding position to reflect accrued profits and losses, often required to calculate margin calls.
A notional profit or loss of a long or short position as compared to the current market price.
Process of re-evaluating all open positions with the current market prices. These new values then determine margin requirements.
Pricing outstanding loans to the current market price of the security to ensure full collateralization.
Determination of securities' value within a margin account to ensure that the account is in compliance with maintenance requirements.
To compare (and adjust) contract price to market price.
When securities are sold short they are placed in a short account within a general margin account. The resulting credit balance is isolated within the short account and adjusted weekly by the brokerage firm by a process called "marking to the market." This is an accounting procedure required for maintaining the credit balance in the short account equal to the market value of the short positions.
To make a summary accounting adjustment to reflect unobtained gains and losses on purchase price values of a particular investment.
Adjust the value of an asset or liability to reflect the current market price. For example if you buy 1000 Vodafone shares at £1.00 on the opening, and at close of business the price is £1.05, then £50 in profits will be deposited in your account in sol called positive maintenance margin. Vice-versa for marked-to-market losses.
The comparison and adjustment of a position to reflect current market values. Mark to market is conducted on stocks that were sold short, uncovered calls and puts and when-issued securities. The adjustment may cause a margin call to be issued. See: Margin; Margin Call; Market Price; Selling Short; Uncovered Call Option; Uncovered Put Option
Valuing the price of a stock or portfolio on a daily basis to record profits/losses.
Valuing a security based on its current market value. Frequent mark to market valuations ensure that prices of securities reflect their true market value.
The process of increasing or decreasing the original investment cost or value of a property asset or portfolio to a level estimated to be the current market value.
In finance and accounting, mark to market is the act of assigning a value to a position held in a financial instrument based on the current market price for that instrument or similar instruments. For example, the final value of a futures contract that expires in 9 months will not be known until it expires. If it is marked to market, for accounting purposes it is assigned the value that it would fetch in the open market currently.