1.

Explain MTM Margin?

Answer»

The mark to market margin (MTM) is collected from the member before the start of the trading of the next day. The MTM margin is collected/adjusted from/against the cash/cash equivalent component of the liquid net worth deposited with the Exchange.

Mark to market loss is calculated by marking each transaction in security to the closing price of the security at the end of trading.

ClientSecurityT-1 dayT dayTotal profit/ loss of ClientMTM for broker
Client A S700200
Securities Y-400-1000
Total300-800-800
Client BSecurities X200600
Securities Y400-1000
Total-600400-1000
Member1800


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