Cut line in the Liquidity Agreement effortlessly

Aug 6th, 2022
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How to Cut line in the Liquidity Agreement

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[Music] okay so following along with the previous episode about liquidity were going to be looking at liquidity from the aspect of understanding how to either wait for our higher time frame order blocks to be hit as well as being able to potentially take trades on the lower time frames while the liquidity is getting created okay and so the patterns that i like to use guys mainly for this and ive mentioned it to the group before is the quasimodo pattern okay so the quasi pattern is typically something that you know ends up looking like this right theres other ones that end up being something like that but the concept between all of these is that there is inducement or liquidity that is created inside of this range okay that then price wants to tap into some sort of imbalance or order block up here to then keep going in its general direction okay so you obviously have to have an overall higher time frame bias right thats always key and then everything else on the lower time frames c

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A haircut is the lower-than-market value placed on an asset when it is being used as collateral for a loan. The size of the haircut is largely based on the risk of the underlying asset. Riskier assets receive larger haircuts.
In finance, a haircut refers to the reduction applied to the value of an asset for the purpose of calculating the capital requirement, margin, and collateral level. In other words, it is the difference between the amount of a loan given and the market value of the asset to be used as collateral for the loan.
A haircut is the difference between the initial market value of an asset and the purchase price paid for that asset at the start of a repo.
The term haircut in finance refers to the reduction applied to an assets value for the purpose of calculating the capital requirement, margin and level of collateral. It is the difference between the amount of a loan and the market value of the asset to be used as collateral for the loan.
The haircut is the percentage difference between the assets market value and the limit you will receive against your collateral (an asset that is kept as security).
What Is Haircut Value? Haircut value is the lower-than-market valuation placed on an asset when the asset is being used as collateral for a loan. The haircut value is externally determined, and the asset holder often does not have a say in the determination of the haircut value.
For instance, if someone borrows $130,000 to purchase a house worth $150,000, the LTV ratio is $130,000 to 150,000 or $130,000$150,000, or 87%. The remaining 13% represent the lenders haircut, adding up to 100% and being covered from the borrowers equity.
When a bank takes a haircut, it means it accepts less than what was due in a particular loan account. Example: if a bank was owed Rs 10,000 by a borrower and it agrees to take back only Rs 8,000, it takes a 20% haircut.

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