The process of marking to market
A) posts gains or losses to each account daily.
B) may result in margin calls.
C) impacts only long positions.
D) posts gains or losses to each account daily and may result in margin calls.
E) All of the options are correct.

Question

Quizplus · Accepted Answer

Marking to market involves adjusting the value of an account to reflect the current market values of the assets held, which can lead to daily posting of gains or losses and potentially trigger margin calls if the value falls below required levels. It affects both long and short positions, not just long positions.

The Process of Marking to Market