Haircuts need help

[munishvashishtha]

i am new here so don't know where is the right place to put this
i am also new in trading and has entered there just few days back
yesterday i bought some shares and could not book the profit in time so in the hope that today i will get some higher lvl ad some profit i moved them from intraday to delivery.
now the portfolio says that there are 100% haircut on that and no collateral value
and also i got message from the company that they will square off all my shares
can someone help me about what this haircut is and collateral value is and how these things affect us

 

[lasty66]

i am new here so don't know where is the right place to put this
i am also new in trading and has entered there just few days back
yesterday i bought some shares and could not book the profit in time so in the hope that today i will get some higher lvl ad some profit i moved them from intraday to delivery.
now the portfolio says that there are 100% haircut on that and no collateral value
and also i got message from the company that they will square off all my shares
can someone help me about what this haircut is and collateral value is and how these things affect us

hi munish...with thousands of words in english vocabulary.. all they could get was 'Haircut' for Share Markets !! :rofl:
anyways ..jokes apart i hope somebody explains the significance of 'Haircuts' to all of us..

 

[gunavadhi]

haircut
A deduction in the market value of securities being held by brokerage and investment banking firms as part of net worth for calculating their net capital. The size of a haircut varies with the particular type of security held.
http://financial-dictionary.thefreedictionary.com/Haircut

 

[munnabhai208]

http://www.investopedia.com/terms/h/haircut.asp

 

[alroyraj]

i am new here so don't know where is the right place to put this
i am also new in trading and has entered there just few days back
yesterday i bought some shares and could not book the profit in time so in the hope that today i will get some higher lvl ad some profit i moved them from intraday to delivery.
now the portfolio says that there are 100% haircut on that and no collateral value
and also i got message from the company that they will square off all my shares
can someone help me about what this haircut is and collateral value is and how these things affect us

In intraday we are given a exposure of say 6 times but this has to be squared off at the end of the day. One can take delivery only to the extent of the cash held in the margin account. Basically there are 2 types of margin.
Cash margin allows one to buy securities X times the cash held . Stock margin is when on account of shares held,one is allowed to borrow on amount at a percentage of the value of the shares held.
These shres value is discounted by a percentage called haircut. :thumb: