It is process of gauging the impartial worth of accounts that can vary over time such as assets and liabilities. Mark to market objects to deliver company’s current business situation or accurate appraisal of an institution founded on current market condition. In investing and trading, securities such as mutual funds and futures also marked to market to deliver current market worth of these investments.
Mark to market provide an accurate and precise current market value of company’s assets and liabilities, but during high volatile and unfavorable times, mark to market may not precisely represents true value of assets. The accounts in future trading are marked on daily basis. The ratio of profit and loss are measured between the long and short positions.