That is, after the end of each trading day, all customers' positions are settled according to the settlement price, which is included in the profit and set aside the loss.
The following example illustrates the difference between mark-to-market gains and losses and floating gains and losses:
Suppose a customer opens an account with a capital of 50,000 yuan and buys 5 lots of soybeans one day. The opening price is 3 150 and the closing price is 3 135. Floating profit and loss are:
(3 135-3 150)*5=-75
The opening (fund) balance is 50000, and the closing balance is 50000-75 = 49925 (for simplicity, the handling fee is not considered).
The gains and losses marked to market are:
(3 135-3 150)*5=-75
Customer equity at the beginning of the period is 50,000, and customer equity at the end of the period is 50,000-75 = 49,925.
If the position is still open the next day and the settlement price is 3 170, the floating gain and loss is:
(3 170-3 150)*5= 100
The opening balance is 50000, and the closing balance is 50000+ 100 = 50 100.
The gains and losses marked to market are:
(3 170-3 135)*5= 175
At the beginning (the end of the last trading day), the customer's equity was 49925, and at the end, the customer's equity was 49925+ 175 = 50 100.
Therefore, if only the first-hand contract is considered (taking multiple orders as an example), the floating profit and loss is the "settlement price of the opening price of the day"
The daily mark-to-market profit and loss is: "the settlement price of the day-the settlement price of the previous day"
When calculating customer funds, if floating gains and losses are adopted, the original customer fund balance will always be used for calculation. If mark-to-market gains and losses are adopted, the customer's equity at the end of the previous trading day shall be calculated.
The concept of mark-to-market profit and loss originated from Suzhou Commodity Exchange. Suzhou Stock Exchange clearly used "mark-to-market gains and losses" to settle members in its transaction bill (exchange member settlement bill), while other exchanges used "floating gains and losses" to settle members at that time.