Thursday, 28 January 2016

Concept of Mark to Market in Equity Cash Market.

                            CONCEPT OF MARK TO MARKET

                                                                 It is basically real time profit and loss.When a trader matches his executed trade with the current market price,in order to know real time profit and loss is known as m to m.

It is basically of two types:-

1.Floating M to M:-

                               When trade is executed but not squared off.

2.Booked M to M:-

                               When trade is executed and also squared off.

                                       BENEFIT OF M TO M

                                                               Broker will increase intraday credit limit for a trader to trade,when m to m is positive.

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