Can anyone explain me what is "mark to market" in the trading account balances at the end of everyday?

Question

Thank you so much in advance.

Answer 1

All it means is that the value of your account is determined by the current market price of the contents at the end of every day.

For example, assume your portfolio at the beginning of the day contained

$10,000 cash
1,000 shares of stock UVW trading at $10 per share, and
100 shares of stock XYZ trading at $100 per share

your portfolio would be worth $30,000.

Now assume at the end of the day

UVW closed at $9 per share
XYZ closed at $120 per share and
you had received a $25 dividend during the day.

At the end of the day the value of your account would be recalulated using current prices and be worth

$10,025 for the cash it contains plus
$9,000 for the UVW stock plus
$12,000 for the XYZ stock equals
$31,025 total.

Answer 2

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