- Main
- Funding
- Pledging Mutual funds
- What is a haircut in pledging of Mutual funds/Securities?
Print
What is a haircut in pledging of Mutual funds/Securities?
Posted
Updated
ByManoj
When a trader plans to avail margin by pledging mutual funds, he/she receives the margin after a haircut. Haircut is the percentage difference between mutual fund’s market value and the amount that can be used as collateral margin for trading. To know the approved mutual funds the haircut percentage click here.