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What is the difference between day-to-day marking and hedging in futures?
There are two main settlement methods of futures trading, one is hedging one by one, and the other is marking the market day by day.

The calculation methods of the two settlement methods are as follows:

11 hedge

1, closing profit and loss (hedging one by one) = difference between opening price and closing price × number of lots× trading unit.

2. Floating profit and loss = the difference between the settlement price and the opening price of the day × the number of lots × the trading unit.

3. Balance of the day (transaction hedging) = balance of the previous day (transaction hedging)+total deposits and withdrawals of the day+liquidation gains and losses (transaction hedging)-handling fee of the day.

4. Customer's equity (transaction hedging) = current balance (transaction hedging)+floating profit and loss.

Mark the market every day

1, closing profit and loss (marked to market day by day) = daily average warehouse profit and loss+historical average warehouse profit and loss.

(1) The average warehouse profit and loss of the day = the difference between the opening price and closing price of the day × the number of lots× the trading unit.

(2) Average historical warehouse profit and loss = the difference between the closing price and yesterday's settlement price × lots × trading units.

2. Position profit and loss (mark to market day by day) = position profit and loss of the day+historical position profit and loss.

(1) Profit and loss of positions held on the same day = difference between settlement price and opening price on the same day × number of lots× marketing unit.

(2) Historical warehouse profit and loss = the difference between the settlement price of the current day and the settlement price of yesterday × the number of lots× the trading unit.

3. Today's profit and loss = liquidation profit and loss (marked to market on a daily basis)+position profit and loss (marked to market on a daily basis)

4. The balance of the day (marked to market day by day) = the balance of the previous day (marked to market day by day)+the total volume of the day+the profit and loss of the day-the handling fee of the day.

5. Customer's rights and interests = balance of the day (mark to market day by day)