What are "risk-based haircuts" ?

Discussion in 'Trading' started by tradertony76, May 4, 2006.

  1. Hey all.

    Has anyone heard this term before ? I was reading about a particular trading firm and an overview of their business states:

    "We specialize in risk-based haircuts for equity and index option traders and cross margining on futures contracts."

    I have no idea what they are talking about. Could someone help me out with this ?

  2. Heh. Sorry for asking before searching.

    Anyways, thanks for the leads.