haircut definition

haircut

General: Trimming excesses without jeopardizing the main objective.

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

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

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.

haircut is in the Banking, Commerce & Finance, Commodities & Precious Metals Trading, Entrepreneurship, Management, & Leadership and Securities & Futures Trading subjects.

haircut appears in the definition of the following term: loan value

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