Mark-to-market accounting
Also known as: fair value accounting · marking to market · M2M · MTM
Mark-to-market or fair value accounting is accounting for the "fair value" of an asset or liability based on the current market price, or the price for similar assets and liabilities, or based on another objectively assessed "fair" value.
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daily settlement process for futures contracts
Futures contracts are marked-to-market daily, meaning gains and losses are settled at the end of each trading day to prevent the accumulation of debt.
valuation method for forward contracts
Forward contracts are often valued against the current forward curve to determine their mark-to-market value on a balance sheet.