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Home/Glossary/Mark-to-market

Futures · Pro

Mark-to-market

By Omer Rapaport · Content updated 11 September 2026

What does Mark-to-market mean?

Mark-to-market updates a position’s valuation using current or settlement prices. Futures daily settlement transfers gains and losses based on the applicable settlement process.

Example

A settlement-price increase credits a long futures position and debits the corresponding short exposure.

Illustrative example; not a provider’s quoted offer.

Why it matters for prop traders

The exchange settlement price can differ from a chart’s last traded price.

Sources and further reading

The following primary sources support the terminology. Provider rules describe their own products and may change.

  • CME Group - Position and risk management

Related terms

  • Settlement price
  • Backwardation
  • Calendar spread
← All 181 terms

Frequently asked questions

Is the settlement reference always the last traded price?

The exchange settlement price can differ from a chart’s last traded price.

Sources: CME Group - Position and risk management

What is a practical example of Mark-to-market?

Illustrative example: A settlement-price increase credits a long futures position and debits the corresponding short exposure.

Sources: CME Group - Position and risk management

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