Mark to Market (MTM)

Mark to Market (MTM)

The term mark to market refers to a method under which the fair values of accounts that are subject to periodic fluctuations can be measured. i.e., assets and liabilities. The goal is to provide time to time appraisals of the current financial situation of a company or institution. In securities and futures markets, mark-to-market refers to the adjustment – up or down – of the price of a position to the prevailing market price or the daily settlement price or price fix. In an accounting context, mark to market refers to an asset carried at the current value rather than historic cost.

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