What is M2M or Marking to Market?

In F&O trades, you’ll either make profit or losses. Mark to Market or Marking to Market (M2M) is simply the profit & loss you have made for a day on your F&O trades.

Let’s take an example to understand how does M2M is calculated;

Suppose, on 7 Dec, you bought a company’s future contract at Rs 100 and the lot size is 2000 shares. Here, the calculation of M2M every day will be as follows;