what is the difference between a haircut and a margin 
a haircut and a margin are effectively the same things both items determine the value of collateral that is often less than the full amount of the collateral or loan a haircut is often expressed as a reduction in the value of collateral for example a borrower may have received a 5 haircut on their 10 000 collateral this means the borrower s collateral was only valued at 9 500 alternatively margin is often stated as the collateral ratio or percentage of the purchase price imagine a borrower opens up a trading account with a 60 margin the borrower must deposit 10 000 to borrow 6 000 