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Value at Risk - VaR

   Also found in: Encyclopedia, Wikipedia 0.03 sec.
Value at Risk - VaR
A technique used to estimate the probability of portfolio losses based on the statistical analysis of historical price trends and volatilities.

Notes:
VaR is commonly used by banks, security firms, and companies that are involved in trading energy and other commodities. VaR is able to measure risk while it happens and is an important consideration when firms make trading or hedging decisions.


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