Mark to market (MTM) is a method of measuring the fair value of accounts that can fluctuate over time, such as assets and liabilities. Mark to market aims to provide a realistic appraisal of an institution's or company's current financial situation based on current market conditions.

Mark to market can present a more accurate figure for the current value of a company's assets, based on what the company might receive in exchange for the asset under current market conditions.
However, during unfavorable or volatile times, MTM may not accurately represent an asset's true value in an orderly market.
Mark to market is an alternative to historical cost accounting, which maintains an asset's value at the original purchase cost.
In futures trading, accounts in a futures contract are marked to market on a daily basis. Profit and loss are calculated between the long and short positions.