The process of adjusting traders account balances to reflect changes in market prices is known as:
A)margin call.
B)marking to call.
C)marking to market.
D)spread.

Question

Quizplus · Accepted Answer

Marking to market is the process of adjusting traders' account balances to reflect changes in market prices. This is done on a daily basis to ensure that traders have enough funds to cover potential losses. Margins are evaluated and adjusted accordingly based on current market prices, which helps to mitigate risk. Margin calls are an alert to traders that they need to add more funds to the account due to losses exceeding the margin requirement. Marking to call and spread are not related to the process of adjusting account balances to market prices.

The Process of Adjusting Traders Account Balances to Reflect Changes