The process of marking-to-market

Question

Quizplus · Accepted Answer

Marking-to-market is the process of adjusting the value of a security or portfolio of securities based on the current market price. This adjustment is done on a daily basis and results in gains or losses being posted to each account. This process can lead to margin calls if the value of the securities falls below the required margin level. Marking-to-market impacts both long and short positions. Therefore, option E, both A and B are true, is the best choice.

The Process of Marking-To-Market