Mark To Market (MTM) in Forex
A clear definition of Mark To Market (MTM), with practical context for reading markets and making better trading decisions.
Definition
Mark to market (MTM) means valuing an asset, liability, or open position using a current market price or market-based value instead of leaving it at an old transaction price. The process makes unrealized gains and losses visible as prices change.
How It Works
This term can appear around accounts, brokers, market structure, or financial commentary. Its exact implementation can vary by jurisdiction, venue, or provider, so the label should be read together with the surrounding documentation.
Why It Matters
Level 2 is about becoming market-literate before a first demo trade. Recognizing the term helps you understand what a platform, broker document, or market report is actually describing.
Key Takeaway
Mark to market (MTM) means valuing an asset, liability, or open position using a current market price or market-based value instead of leaving it at an old transaction price.
Practical forex example
Why Mark To Market (MTM) matters
Understanding Mark To Market (MTM) helps traders interpret market information, plan decisions, and manage risk with more context.
Related forex terms
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