Understanding Mark to Market (MTM) in Trading

What is Mark to Market (MTM)?

Mark to Market (MTM) is a daily accounting method used to determine the current value of your trading positions. At the end of each trading day, open positions are adjusted to reflect the prevailing market price, which helps assess unrealized gains or losses.

Example:
- If you buy a stock at ₹100 and it closes at ₹105 on the same day, your MTM profit is ₹5.
- If the price falls to ₹95, you incur an MTM loss of ₹5.

This valuation resets daily until the position is closed, and the final profit or loss is then booked.

How is MTM used on FYERS?

FYERS automatically applies MTM calculations to all intraday and carry-forward positions in equity, F&O, and commodity segments. The MTM amount is:

  • Credited to your account if it’s a profit
  • Debited from your margin if it’s a loss

You can track MTM updates live on the FYERS platform under:

  • Funds & Margin → Realized / Unrealized P&L
  • Positions → MTM column (live updates during market hours)

What If...

ScenarioMTM Behavior
You exit an intraday position before market closeMTM is realized and reflected under realized P&L
Your position is carried forward overnightMTM resets the next day based on the new market price
MTM causes margin shortfallYou may face auto-square-off or margin call alerts
Market closes on a holidayNo MTM is applied; previous day’s price is used as reference
Tip: MTM can impact your available margin. Always monitor your Funds & Margin section during volatile market hours to avoid surprises.

Last updated: 28 Jun 2025

    • Related Articles

    • How often is Mark to Market (MTM) assessed in trading?

      In trading, MTM (Mark to Market) is typically calculated daily. At the end of each trading day, MTM helps determine the day's profits or losses on open positions. This regular assessment allows traders to effectively monitor and manage their ...

    • How does the End of Day (EOD) Mark-to-Market (MTM) settlement process work in futures trading?

      The End of Day (EOD) Mark-to-Market (MTM) process is a key mechanism in futures trading that adjusts a trader’s ledger based on daily price movements of their open positions. It ensures all gains and losses are reflected on a day-to-day basis. How ...

    • Does MTM settlement apply to options trading?

      No, the Mark to Market (MTM) settlement process does not apply to options contracts. MTM settlement is a mechanism used for futures contracts, where the daily gains and losses are calculated and settled based on the market price of the underlying ...

    • Why do market orders carry execution risks?

      Market orders are designed for speed—they execute your trade immediately at the best available price. However, they come with a trade-off: you give up price control, which may lead to unfavourable executions in volatile or illiquid markets. What ...

    • What is Post-Market and can I place an order during Post-Market?

      The post-market session offers a short trading window after the regular market hours. While it's limited in scope, FYERS allows you to place specific types of orders during this period. Here's how it works. What is the Post-Market session? The ...