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.

Stepwise Regression

Regression analysis is a powerful tool used in finance to determine the most influential factors on a given outcome. This method involves carefully selecting independent var...

Overbought/Oversold Indicator

In the world of finance, there is a key indicator that serves as a warning sign when prices have experienced a rapid and extreme movement, leaving them susceptible to a pote...

The International Union of Credit and Investment Insurers, also known as Berne Union, is a global association of credit and investment insurance providers. This organization...

Early morning trading involves buying a large quantity of stocks in a company at the beginning of the trading day. This is known as "opening the market" and can potentially ...

Optional Term Contracts

A key concept in finance is the forward exchange contract, which typically includes a 15 to 30 day option period. This contract allows parties to lock in a future exchange r...

The term hundredweight is a unit of measurement that is commonly used in the financial world. It is equivalent to 100 pounds and is often abbreviated as "cwt." This unit is ...

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

Credit Cards

All terms and concepts related to the use, features, and management of payment cards allowing users

Public Offerings

All terms related to a company selling its shares or bonds to the public for the first time (IPOs) o

Derivatives

All terms & concepts related to financial contracts whose value is based on an underlying asset,

Currency

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

Mutual Funds

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

Fixed Income Instruments

All terms related to investments like bonds or treasury bills that provide regular, fixed payments,

Financial Instruments

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

Commodity

All terms related to the basic goods used in commerce that are interchangeable with other goods of t

IPO

All terms and concepts related to the process in which a private company offers its shares to the pu

Stocks

All terms and concepts related to stocks, also known as equities, which represent ownership shares i

4.4 Cr+ DOWNLOADS

Enjoy Zero Brokerage On Stock Investments