When you pledge securities at FYERS for collateral margin, the full market value of your holdings is not considered. A percentage reduction called a haircut is applied so that only a portion of the value counts toward the margin. This acts as a risk buffer against sudden price drops in pledged securities.
A haircut is the percentage by which the market value of pledged securities is discounted for margin purposes.
More volatile securities attract higher haircuts, while stable or cash-equivalent securities have lower ones.
If you pledge securities worth ₹20,00,000 and the haircut is 10%, the collateral margin available to you becomes:
₹20,00,000 – 10% = ₹18,00,000
| Scenario | Solution |
|---|---|
| My pledged value looks lower than the market value | This difference is the haircut; check the exact percentage in the FYERS haircut list to see how much of the value is counted for margin. |
| I pledged volatile stocks and received less margin than expected | Volatile stocks have higher haircuts, so consider pledging stable or cash-equivalent securities to receive a higher effective margin. |
| I pledged LiquidBees, but still see a haircut | Liquid ETFs also have haircuts, although typically lower than equity haircuts. |
| Can haircut percentages change? | Yes, exchanges may revise haircuts based on volatility or liquidity, so check the list periodically. |
Last updated: 05 Dec 2025