What are Mark-To-Market Payments?
Mark-To-Market payments are payments required to be made in accordance with any movements in the Reference Security Price. Mark-To-Market payments reflect the profit or loss with respect to the CFD which would be realised if the CFD were Closed-Out immediately. If the Reference Security Price increases whilst the CFD is open, the Short Party must pay the amount of the corresponding increase in the CFD Value to the Long Party. Conversely if the Reference Security Price decreases whilst the CFD is open, the Long Party must pay the amount of the corresponding decrease in the CFD Value to the Short Party While Mark-To-Market payments are made only at the end of each Business Day, CFD Values are in fact recalculated continuously. Accordingly, you should ensure that sufficient funds are available to cover such payments at all times.
