Click here to add us to your favorites




haircut

Definition 1

General: Trimming excesses without jeopardizing the main objective.

Definition 2

Banking: Difference between the market value of a collateralized asset and the amount of loan advanced against it. See also loan value.

Definition 3

Commodity trading: Margin between a commodity dealer's buying and selling prices.

Definition 4

Securities trading: Broker or dealer's estimate of possible loss on a particular security, based on an evaluation of its associated risks. Lower the chance of default on an investment, lower the haircut.

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z