What is Marked-to-Market (MTM) profit or loss?

MTM (Marked-to-Market) refers to the daily profit or loss calculated based on the closing market price of your open positions.

• MTM is commonly used in futures and options and intraday positions to assess gains/losses at the end of each trading day.
  • 📌 Example: You buy a futures contract at ₹1,000. At market close, it’s at ₹1,050. Your MTM profit is ₹50 per unit for the day, which is credited to your account.

If the price falls the next day, the MTM loss will be debited accordingly.