What are "risk-based haircuts" ?

[tradertony76]

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 ?

Thanks,
Tony

 

[damon_achey]

Search, what a wonderful thing

http://www.elitetrader.com/vb/searc...=1187850&sortby=lastpost&sortorder=descending

or

http://www.investopedia.com/terms/h/haircut.asp - don't forget to follow the additional links at the bottom.

 

[tradertony76]

Heh. Sorry for asking before searching.

Anyways, thanks for the leads.