What is mark to market?
Mark to market (MTM) refers to the daily settling of gains and losses due to changes in the market value of the security.
If the value of the security goes up on a given trading day, the trader who bought the security (the long position) collects money–equal to the security’s change in value–from the trader who sold the security (the short position).

Conversely, if the value of the security goes down on a given trading day, the trader who sold the security collects money from the trader who bought the security. The money is equal to the security’s change in value.

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