Valuation Percentage (haircut)

This Issue in United States

Valuation Percentage (haircut)

Concept of Valuation Percentage (haircut) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The percentage by which the market value of the collateral will be reduced to allow for price volatility and instrument liquidity in respect of the relevant collateral between collateral calls.

Resources

See Also

• Derivatives Contract