Word
haircut
Phoneticshair·cut, stress on the first syllable
US/ˈhɛɹˌkət/
UK/hˈeəkʌt/
Definitions
01hair grooming
A2 · Elementary Countable noun
n. the act of cutting your hair or the new style you have after it is cut.
n. the act of shortening or styling the hair, or the resulting hairstyle itself.
“I need to get a haircut before the wedding because my hair is getting too long.”
“She was so pleased with her new haircut that she immediately booked another appointment for the following month.”
02financial loss
C1 · Advanced Countable noun Law Technical · Formal
n. a reduction in the value of an investment or the amount of money a person is paid back.
n. a proportional reduction in the value of an asset or a debt repayment, often during bankruptcy or debt restructuring.
“The investors had to take a twenty percent haircut on their original investment.”
“Under the terms of the restructuring agreement, the creditors were forced to accept a significant haircut to prevent the company from total liquidation.”
Usage
Often used with the verb 'take'.
Teaching tip
This is a common metaphor in financial news and legal proceedings regarding debt.
03collateral margin
C2 · Proficiency Countable noun Science Technical · Academic
n. the difference between the market value of an asset and the amount of a loan it secures.
n. the percentage by which the market value of an asset used as collateral is reduced for the purpose of calculating the capital requirement or loan amount.
“The bank applied a ten percent haircut to the stocks used as collateral for the loan.”
“Regulators increased the required haircut on sovereign debt to ensure that banks maintained sufficient liquidity during the market volatility.”
Usage
Used as a technical term in risk management and banking.
Teaching tip
This sense is highly specific to banking and risk assessment professionals.
Synonyms
04to reduce value
C1 · Advanced Law Technical · Formal
v. to lower the recorded value of an asset or a debt.
v. to apply a reduction to the value of an asset or financial claim.
“The government decided to haircut the bonds to manage the national debt.”
“The central bank may choose to haircut certain assets more aggressively if market conditions continue to deteriorate.”
Usage
Transitive verb requiring a financial asset as an object.
Teaching tip
The verb form is less common than the noun but appears frequently in high-level financial reporting.
Antonyms
Real-World Examples
“How to get the 1.5-inch-long haircut required to look the part.” “There is friendless Patch, riddled with anxiety, who bursts into tears at the memory of the postman’s suicide and falls victim to a terrible haircut.” Etymology
From hair + cut.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.
Domains
- Exam level
- CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.C1 AdvancedIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.7.0–8.0TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 5.0–5.595–113TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.945–990
- Frequency
- Frequent
- Level
- C1 · Advanced
- Updated
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