Articles - Stocks
Understanding the Concept of Haircut in Margin Trading
Haircuts in margin trading serve as a risk management tool for brokers and regulators to protect against sudden market fluctuations.
LTP or last traded price refers to the last price at which a particular stock was traded. LTP is an indicator best suited for use as a measure against which calculations of future price fluctuations are based. An LTP is typically measured at the same speed at which transactions take place in modern stock trade, usually milliseconds or microseconds.