Forex glossary

Mark-to-Market in Forex

A clear definition of Mark-to-Market, with practical context for reading markets and making better trading decisions.

Level 2 · From Prices to PracticeOrders & execution

Definition

Mark-to-market is the practice of revaluing positions or financial items using current market values. In trading accounts, it helps update equity and unrealized profit or loss as the market moves.

How It Works

Electronic markets separate the price you see, the instruction you send, and the final execution you receive. Available liquidity, order type, venue rules, and market movement can all affect what happens between those steps.

Why It Matters

This vocabulary lets you read a broker or platform screen accurately. The goal at Level 2 is mechanical literacy - knowing what a displayed price, order status, or execution record means - rather than predicting the market.

Key Takeaway

Mark-to-market is the practice of revaluing positions or financial items using current market values.

Practical forex example

An open futures position gains $500 based on the latest settlement price. A mark-to-market process reflects that change in the position's current valuation.

Why Mark-to-Market matters

Understanding Mark-to-Market helps traders interpret market information, plan decisions, and manage risk with more context.

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