n NISM Certifications
VII NISM Series VII
Medium

In F&O, mark-to-market (MTM) is:

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Daily profit or loss adjustment

    Correct answer

  2. B

    Initial margin calculation

  3. C

    Extreme loss calculation

  4. D

    None of the above

Why this is the answer

MTM ensures traders’ accounts reflect daily gains or losses based on market price changes.

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