Haircut

What is Haircut?

Haircut meaning In computing the value of assets for purposes of capital, segregation, or marginrequirements, a percentage reduction from the stated value (e.g., book value or market value) to account for possible declines in value that may occur before assets can be liquidated.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary

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