Value at Risk (VAR) is a measure of risk metric in finance used to quantify the potential loss in the value of a portfolio of assets or a single investment in a specific time horizon, given a certain level of confidence.
For instance, lets say there is a VAR of $1000000 at the 95% confidence level in a daily time horizon period, that means that there is a 5%...
The Value at Risk Channel (VaR Channel) is a trading indicator designed to help traders control the level of risk exposure in their positions. The user can select a time period and a probability value, and the indicator will plot the upper and lower limits that the price can reach during the selected time period with the given probability.
CONCEPTS
The...