All termsLeverage, Margin and CollateralWorth knowing
Haircut
A haircut is a reduction applied to the value of an asset when determining how much of that value will be recognized for collateral or risk purposes.
Why it matters to you
If $10,000 of an asset receives a 10% haircut, only $9,000 may be recognized for the relevant collateral calculation. Haircuts help account for risks such as volatility, liquidity and potential changes in asset value.
Terms that sit next to this one
See the perpetuals front
The tools, the live market and the course.