Futures mechanics
What is Mark-to-Market (Daily Settlement) and how is capital transferred between accounts every afternoon?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Mark-to-market is the daily process where gains and losses on open futures positions are settled in cash between accounts each day.
How it works
The clearinghouse recalculates contract values at settlement and transfers money between winning and losing accounts, resetting the cost basis daily.
An example
Daily settlement credits or debits a trader's account based on that day's price change.
Risk & limitations
Daily mark-to-market can create real cash outflows even on unrealized positions.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.