Value-at-Risk Definition

Below please find a definition of “Value-at-Risk”

Financial Analysis Training & Glossary TermsValue-at-Risk: The concept of VaR is used in firms that are involved in trading securities and commodities. With the help of statistical analysis of chronological price trends, VaR is capable of measuring risks while they happen and therefore is instrumental for firms during the process of making trading decisions. Volatility is a major factor in determining such risks.

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