Because futures contracts are "marked-to-market" daily, the gains and losses are settled daily.

Question

Quizplus · Accepted Answer

Futures contracts are marked-to-market daily, which means that gains and losses are settled daily. This process involves adjusting the margin account of the parties involved and ensuring that they have sufficient funds to cover any potential losses. By settling gains and losses daily, futures markets can reduce counterparty risk and ensure the integrity of the trading system.

Because Futures Contracts Are "Marked-To-Market" Daily, the Gains and Losses