Accuracy Coverage Pricing Contact

What does Mark-to-Market mean?

Mark-to-Market is the pricing up of a security at the end of the day to achieve it's true value. An investor may think a share is worth 200p, if that is what they paid for it. They may have bought 10000 shares at 200p and have a value in their head for the shares of £20,000. But if the shares fall 10p during the day. At the end of the day if you mark-to-market, then the shares are worth only £19,000. The investor does not make a loss until he sells, but clearly if the investor bought at 200p, he expects the shares to rise above that level and in many cases would ignore the mark-to-market value.