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Friday, 19 July 2024

Value at risk

Estimated potential loss for an investment under a given set of conditions


Value at risk
Value at risk

Value at risk (VaR) is a measure of the risk of loss of investment/Capital. It estimates how much a set of investments might lose, given normal market conditions, in a set time period such as a day. VaR is typically used by firms and regulators in the financial industry to gauge the amount of assets needed to cover possible losses.

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