The system of "marking the market day by day" originated from Suzhou Commodity Exchange, which is a settlement convention and is used for settlement between the exchange and its members.
That is, after the end of each trading day, the profit and loss of each member's trading position and the settlement price of each variety are calculated. The profit and loss of opening and closing positions are credited to the member's fund account, and the loss is credited to the member's fund account. In this way, you don't need to consider the accumulated floating profit and loss, but only the daily profit and loss (daily mark-to-market profit and loss), which is very clear and easy to understand on the transaction bill.
Mark-to-market profit and loss is one of the concepts of futures trading settlement, and the futures settlement system is "daily debt-free settlement system", also known as "daily mark-to-market system".
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.
Reference interviewee: stray cats.