Settlement Cycle:

In trading, there is a fixed time period for the settlement of trades as per terms of contract. This time period is termed as Settlement Cycle. For commodities, currently all trades are being mark to market at the closing price of contract and mark to market requirement are settled at T+1. For arriving at the settlement day all intervening holidays, which include bank holidays, Saturdays and Sundays are excluded..

Mark to market (MTM) is a method of measuring the fair value of accounts that can fluctuate over time, It aims to provide a realistic appraisal of an institution's.

T+1 abbreviation refer to the settlement date of security exchanges. The T represents exchange date, which is the day the exchange happens. The numbers 1 indicate how many days after the transaction date the settlement or the transfer of money and security ownership takes place..