What is a haircut in Upstox?

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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.


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