General

What is Haircut in Shares As Margin?

While pledging shares, you get a trading limit after reducing a certain value of your holdings. This reduced value is called haircut and it varies from stock to stock.

For example, if the value of shares pledged is worth Rs.10,000 and the haircut of the stock is 20%. The limits created will be 10,000 – 20%* 10,000 = 8,000.