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Why is marking to market on Future contract not discounted back like Forward contract?

When we mark to market for Forward contract, we would calculate as:

=> (Ft - F0) / (1+Rf)T-t 

When marking to market for Future contract, we calculate as:

=> Current future price - Previous settlement price

Therefore, why is marking to market for Future contract not discounted back as Forward contract? What is the difference?

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This is a tricky one…. my answer is, who cares.. you’re going way to deep! You know how to calculate the value of a forward and the value of a futures PV and its more than enough to crack derivaties in L3.

Here’s some prior discussion on the topic:

https://www.analystforum.com/forums/cfa-forums/cfa-level-ii-forum/91331059

https://www.analystforum.com/forums/cfa-forums/cfa-level-ii-forum/91322366

My hunch is that the futures price is a PV price which you can execute on the exchange immediately. So if you have 5 contracts at X value, and you can sell back 5 contracts at X value, thats that. 

125mph wrote:

This is a tricky one…. my answer is, who cares.. you’re going way to deep! You know how to calculate the value of a forward and the value of a futures PV and its more than enough to crack derivaties in L3.

Here’s some prior discussion on the topic:

https://www.analystforum.com/forums/cfa-forums/cfa-level-ii-forum/91331059

https://www.analystforum.com/forums/cfa-forums/cfa-level-ii-forum/91322366

My hunch is that the futures price is a PV price which you can execute on the exchange immediately. So if you have 5 contracts at X value, and you can sell back 5 contracts at X value, thats that. 

Yeah, you’re def right! It just got me thinking about it.