Chittorgarh.com Logo
Loading...

What is a haircut in Upstox?

Upstox Account Opening

FREE Account Opening + Rs 1000 brokerage credit + Rs 0 Demat AMC + Pay flat Rs 20 per trade for delivery, Intra-day and F&O. Open Instant Account and start trading today.

Haircut in upstox is the difference between the current market value of a security and its value calculated for pledging as collateral.

Say, you have 100 shares of SBI currently trading at Rs 400. So, the current market value of your stocks is Rs 40,000. However, if you pledge the stocks as collateral to avail loan against shares, the broker will deduct a haircut to account for any downward swing in the price of SBI share in the future. The haircut differs from stock to stock.

 

Open Instant Account in 15 Minutes Open Instant Account - Start Trading Today

 



Comments

Add a public comment...