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HAIRCUT

Discount applied on the value of pledged shares.

Published by The Retail Trader · JUL 31, 2026 · Market Basics

Haircut — Discount applied on the value of pledged shares. 20% haircut on a share of ₹100 means a margin of ₹80.

WHERE THIS FITS IN

This term comes under Market Basics, in the section "ACCOUNT AND PAPERWORK". And those things which have to be set once before trading, give life full of confusion:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• KYC
• Nominee
• DDPI / POA
• Ledger Balance
• Payin / Payout
• Margin Pledge
• Holding Statement
• CAS (Consolidated Account Statement)
• Contract Note
• SEBI SCORES

To read the entire group and all its examples in one place, see the journal "MARKET BASICS: ABC of Market" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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