Definitions (4)
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1. General: Trimming excesses without jeopardizing the main objective.
2. Banking: Difference between the market value of a collateralized asset and the amount of loan advanced against it. See also loan value.
3. Commodity trading: Margin between a commodity dealer's buying and selling prices.
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.

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