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I asked my broker the following question, but he didn't answer it. I thought
I'd give the list a try.
Scott Hoffman
Issaquah, WA
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This brings up a question I have about daily marking to market. In the
literature, it says cash balances are updated daily on open positions. This
is the whole idea of daily settlement, or marking to market. If my open
position goes my way that day, I get cash in my account that day. Likewise,
cash is debited from my account when an open position goes against me.
However, from the daily equity statements I get it's clear that my cash
balance, or ACB, only gets updated when a position is closed out, or a fee
is charged. Seems like I could have a position go very far against me and
although LV would reflect the open loss, cash is unaffected until the
position is closed. This seems contrary to what daily settlement, or marking
to market means. Can you explain?
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