Mark To Market (MTM)
1. The act of recording the price or value of a security, portfolio or account to reflect its current market value rather than its book value.
2. In terms of mutual funds, a MTM is when the net asset value (NAV) of the fund is valued upon the most current market values. Investopedia Says:
1. This is done most often in futures accounts to make sure that margin requirements are being met. If the current market value causes the margin account to fall below its required level, the trader will be faced with a margin call.
2. Mutual funds are marked to market on a daily basis at the market close so that investors have an idea of the fund's NAV. Related Terms:
Book Value
Current Market Value - CMV
Day Trader
Maintenance Margin
Margin
Margin Call
Mark To Model
Market Value
Net Asset Value - NAV
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