What is Haircut?
Haircut — The percentage discount applied to the value of pledged collateral — only the post-haircut value counts as usable margin.
In simple terms
A 20% haircut on ₹1 lakh of shares gives ₹80,000 of margin.
Why Haircut matters when you invest
Understanding haircut helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Haircut — frequently asked questions
What is Haircut?
The percentage discount applied to the value of pledged collateral — only the post-haircut value counts as usable margin.
What does Haircut mean in the stock market?
The percentage discount applied to the value of pledged collateral — only the post-haircut value counts as usable margin. A 20% haircut on ₹1 lakh of shares gives ₹80,000 of margin.
Can you give an example of Haircut?
A 20% haircut on ₹1 lakh of shares gives ₹80,000 of margin.
Put it into practice — open a free account.
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