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Emini - Cash Settlement Question

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Legendary Market Wizard
Chicago Illinois USA
Trading Experience: Advanced
Broker/Data: IB, ToS
Favorite Futures: /ES, US Equities/Options
wldman's Avatar
Posts: 2,869 since Aug 2011
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Hey man..

What you are describing is a daily mark to market. Your "new" price in that scenario would be your marked price, not your executed short price.

One thing to consider. Are you intending to swing trade over the weekend? If that is not a specific strategy be aware that the unhedged risk you are taking could hurt you for real. I will not carry an ES futures position over the weekend like I used to.

But yeah, what you lose or make on the mark to market establishes the mark as your new price. Effectively the mark takes or makes and you trade that cost basis the next session. If you are positioning or swinging with futures you might benefit from minding the position P/L based on your initial entry.


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