How Is EOD MTM Calculated for Futures?
End of Day Mark to Market (EOD MTM) is the daily cash settlement of open futures positions at the official settlement price. It ensures that your day’s gains are credited and losses debited so margins reflect current risk.
How does EOD MTM work?
- Identify the settlement price: Use the exchange’s official closing or settlement price for the futures contract.
Choose the reference price:
- Carryforward positions: compare today’s settlement with yesterday’s settlement.
- Intraday opens and closes: compare the entry price with the exit price for the same day.
- Compute MTM per unit: Today’s settlement price − Reference price (sign depends on long or short).
- Apply lot size and quantity: Day MTM = MTM per unit × Lot size × Number of lots.
Post to ledger:
- Profit is credited to funds.
- Loss is debited from the margin.
- Roll the reference: Today’s settlement becomes tomorrow’s reference for any open positions.
Long vs short MTM
- Long futures: Gain when settlement is higher than the reference price. Lose when lower.
- Short futures: Gain when settlement is lower than the reference price. Lose when higher.
Example
You buy 1 lot of NIFTY futures at ₹17,800, it settles at ₹17,900, lot size 50.
- MTM per unit = 17,900 − 17,800 = ₹100
- Day MTM = ₹100 × 50 = ₹5,000 credit
If it instead settles at ₹17,700:
- MTM per unit = 17,700 − 17,800 = −₹100
- Day MTM = −₹100 × 50 = ₹5,000 debit
Ledger & funds impact
- Credits from positive MTM increase available funds and may free up margin.
- Debits from negative MTM reduce available margin and can trigger a margin shortfall if balances are inadequate.
- The position remains open unless you close it. Only the day’s P&L is settled in cash.
Track your EOD MTM and available margin daily, especially in volatile markets, to avoid margin calls and forced reductions of your positions.
What if...
| Scenario | Outcome |
|---|
| Futures contract gains during the day | Profit is credited to your account after settlement. |
| Futures contract drops in value | Loss is debited from your margin after settlement. |
| Position is carried forward | MTM resets daily using the latest settlement price. |
| Intraday trade is closed | MTM is computed from entry to exit for that day and shown as realised P&L. |
Last updated: 06 Nov 2025
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