An accounting process by which the price of securities held in account are valued each day to reflect the last sale price or market quote if the last sale is outside of the market quote. The result of this process is that the equity in an account is updated daily to properly reflect current security prices. Market-to-market is the daily adjustment of margin accounts to reflect profits and losses. In this way, losses are never allowed to accumulate.
See Also:
Market: A specific asset, security or commodity that is traded at an exchange.