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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