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Greetings John
Could you please explain the difference between mark to market and Margin (interest rate futures)
Much appreciated
When dealing in futures, you have to pay a deposit at the start of the deal (which you get back at the end of the deal – plus any profits or less only losses on the deal). The deposit is know as the margin.
During the deal, the price of the futures will change from day to day and so the amount of the deposit/margin needed keeps changing. This is known as marking to market.
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