Medi Assist Healthcare IPO

Open Demat Account

Open Demat Account Login

Home Trading Terms

Finance Wiki

Trending Categories

All Financial Terms Financial Instruments Market Entities Corporate Actions Public Offerings Fixed Income Instruments Currency Commodity Mutual Funds Derivatives Trading Terms Taxes

More

More

Derivatives Trading Terms Taxes Property Fixed Income Credit Cards Options and Futures Stocks Insurance IPO Technicals Retirement Planning Loans Gold Bank Deposits

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

#

Trading Terms

Haircut

This is a crucial concept to understand when dealing with securities, such as stocks, bonds, and derivatives. A higher haircut means a larger difference between the market value and loan amount, making it riskier for the lender. It is a way for lenders to protect themselves from potential losses and is often determined by the creditworthiness of the borrower.

Welcome to today's lesson on finance terminology. Today, we will be discussing the concept of a Haircut in the financial world. This term refers to the difference between an asset's market value and the loan amount. It is an important concept to grasp when dealing with securities like stocks, bonds, and derivatives. A higher haircut indicates a greater risk for the lender as there is a larger difference between the market value and loan amount. Lenders use haircuts as a way to safeguard themselves from potential losses, and the amount is typically influenced by the borrower's creditworthiness.

A bill of exchange refers to a written order issued by one party to another, directing the latter to pay a specific amount of money at a predetermined time. It can either be...

ASBA, or Application Supported by Blocked Amount, is a valuable tool created by SEBI for individuals looking to invest in IPOs, Rights issues, and FPS. This application enab...

This can occur in many financial scenarios, such as with stock options, where the long position holds the right to buy a stock at a certain price, while the short position ho...

It helps you control the maximum price you are willing to pay for a security or the minimum price you are willing to accept for selling it. This is a useful tool for investor...

Value Averaging

One of the fundamental concepts in finance is the calculation of an average. This involves taking the sum of a set of values and dividing it by the number of values in the s...

Trade acceptance

In the realm of finance, a bill of exchange refers to a written order issued by a seller or exporter to a purchaser or importer for the payment of goods sold. This written d...

Open Free Demat Account!

Enjoy Zero Brokerage on Equity Delivery

Join our 2 Cr+ happy customers

Want to open an NRI account?

Explore other categories

Currency

All terms related to the system of money in general use in a particular country, representing a medi

Retirement Planning

All terms and concepts related to the process of saving and investing to ensure financial security a

Mutual Funds

All terms and concepts related to mutual funds, which are investment vehicles that pool funds from m

Taxes

All terminology and concepts related to various tax types, tax laws, and taxation principles.

Financial Instruments

Legal contracts that represent financial value, such as stocks, bonds, options, futures, and various

Bank Deposits

All terms and concepts related to the placement of money in a bank account, including savings accoun

Property

The "Property" category in finance encompasses all aspects related to real estate and tangible asset

Trading Terms

Trading Terms encompass terminology and phrases commonly used in financial markets, including terms

Technicals

All terms and concepts related to technical analysis in finance, which involves using historical pri

Insurance

All terms and concepts related to insurance, which is a financial arrangement that provides protecti

4.4 Cr+ DOWNLOADS

Enjoy Zero Brokerage On Stock Investments