# Calculating a MTM on cash position

#### Here's an example for calculating MTM on cash position:

Assume the cash available margin = 20,000

Upstox provides 5x Margin on F&O Stocks.

Assume we are dealing with a F&O Stock; therefore, total exposure is 100,000 for intraday.

Assume the trader buys 100 shares of Reliance @ Rs. 1000, and later sells all 100 shares at Rs. 900

He is now incurring a (100 shares x – Rs. 100) = Rs. 10,000 loss

Compared to his actual capital with Upstox his MTM has breached 50% (20,000 – 10,000)/20,000 = 50%.

At this point in time Upstox will give the client a warning, and for every incremental 10% MTM loss will keep issuing warnings. At 80%, the client is either forced to deposit more funds or Upstox will begin squaring off positions.

#### What is MTM on cash position?

Mark To Market measures the value of an account in terms of the changes that take place over a period of time in the value of assets and liabilities. It is a way to measure the real market value of a security vs. its value in the books.