Glossary

A B C D E F G H I L M N O P R S T V

HAIRCUT: Initial margin on a repo transaction. Generally expressed as a percentage of the market price.
HEDGE FUND: A specialist leveraged investment fund that engages in trading and hedging strategies, frequently using leverage.
HOLD IN CUSTODY (HIC) REPO: Repo whereby the borrower of cash segregates collateral in a specific internal account for the cash lender, rather than delivering out collateral.
HOLDING STOCK: Holding stock, known as icing, is the practice of lenders reserving securities at a borrowers' request in anticipation of the borrower taking delivery of the stock. The securities are still available for loan to another borrower, but only after first refusal to the holder of the stock, known as "fill or kill" or "FORK". Holds generally apply for 24 hours.
HOT/HARD STOCK: A security for which demand to borrow is high relative to its availability in the market and which hence becomes expensive to borrow.