Glossary

Haircut

A haircut is a discount applied to collateral value to account for market risk or volatility.

Value discount for risk

Category: Collateral Risk

Plain-English meaning

Haircut is used here to describe value discount for risk. In the daily board, the word is grouped by the role it performs rather than by spelling or market popularity.

You may encounter it in a product interface, technical document, risk report, policy paper, or market dashboard. The term is included for recognition and comparison, not as a product recommendation.

Why it belongs with Collateral Risk

These terms describe how leverage is supported, monitored, and reduced when markets move.

When solving the puzzle, compare the job this term performs with nearby cards. A correct group usually shares a function, risk type, workflow, or market structure rather than simply sharing similar wording.

Where you might see it

You might encounter this term while reading educational explainers, product documentation, risk disclosures, market dashboards, or beginner guides. Always separate vocabulary learning from financial decision-making.

Educational vocabulary only. This definition does not provide investment, tax, legal, product, or trading advice.