Mark to market

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Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2012 What is mark to market in securities?
provide any reference towards mark to market?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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31 May 2012 Let us have an example...
.
Purchased Security or Future of A Ltd @ 420
.
At the close of the day closing rate of the same is 430.
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Marked to Mkt A/c is Credited by @ Rs 10/- and the FUture will be shown at 430.
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In this way the daily price difference is tfd to M2M a/c the security is shown at the
Closing Rate.
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At the time when the Future is sold,
Profit is decided by -
1. Sale Price- Last Day Price (Opening Price or M2M Rate)
2. Balance in M2M A/c .
.