The process of marking a futures contract to market means that:
A) the profitability of the contract is locked in from the onset of the contract.
B) the amount of commodity to be delivered changes as prices change.
C) contracts are closed out as soon as they become unprofitable.
D) profits or losses are settled daily.

Question

Quizplus · Accepted Answer

When marking a futures contract to market, profits or losses are settled on a daily basis based on the current market value of the contract. This ensures that traders are able to manage their risk and liquidity effectively.

The Process of Marking a Futures Contract to Market Means