Definitions
1, A daily accounting entry that is the bedrock of regulated futures bookkeeping. It’s the end-of-day adjustment made to trading accounts to reflect profits and losses on existing positions. In other words, winnings are credited and immediately available to the account and losses are debited and immediately owed. This brings integrity to the marketplace because participants are not allowed to trade unless funds are available to cover the positions.
2, The daily adjustment of an account to reflect accrued profits and losses often required to calculate variations of margins.