n NISM Certifications
VII NISM Series VII
Medium

Mark-to-market (MTM) loss is calculated by marking each transaction in a security to the closing price at the end of the trading day – True or False?

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

MTM loss is the difference between the purchase price and the end-of-day closing price. Example: Buy at Rs 100, closing price Rs 90 → MTM loss Rs 10.

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NISM Series VII Mock Test 6