What is daily 'Mark to Market' settlement?

Answer 5(a) Daily mark to market settlement is done till the date of the contract expiry. This is done to take care of daily price fluctuations for all trades. All the open positions of the members are marked to market at the end of the day and the profit / loss is determined as below: On the day of entering into contract, it is the difference between the entry value and daily settlement price for that day. On the intervening days, when the member holds an open position, it is the difference between the daily settlement price for that day and the previous day's settlement price. On the expiry date if the member has an open position, it is the difference between the final settlement price and the previous day's settlement price.