Can someone help me understand why there is no MTM settlement for long options, say call option, but there is MTM settlement for long futures. Thanks.
No MTM for options, either long or short. While buying option you will pay full premium so there is nothing more you can loose but whereas future is leveraged product,based on ltp your pnl changes hence m2m will be there.
Need to maintain span and exposure.
MTM is marking to market and is related to pnl, profits will be added and losses will be deducted continuously based on ltp.
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