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Learn MoreThe Value at Risk (VaR) Calculator can help you estimate how much of your investment you might lose at given normal market conditions, over a given period based on the probability of past performance. Stay on top of your exposure in five easy steps with our Value At Risk calculator.
Watch this quick tutorial on how to use the Value at risk calculator to your advantage and stay on top of your exposure.
Value at Risk (VAR) is a metric designed to quantify the maximum loss for an investment or trade over time. It is based on the variance-covariance method, also known as the parametric method.
Using normal distribution, periodic volatility, and a standard periodicity, the VAR furnishes the trader with a “disaster scenario” for an investment portfolio.
Calculating VAR by hand is cumbersome and time-consuming. Our VAR calculator scrutinizes the formula below in seconds.
Account base currency denomination (currency units)
Standard Deviation: Includes the variance-covariance method assuming a normal distribution in expected return
Also called ‘periodic volatility’.
The square root of the given period over how many trading days are there in a year
Future value of risk, informational purposes, estimate
The VAR Calculator is user-friendly. Simply enter the inputs, click Calculate and view how much of your portfolio value is at risk. A quick primer on the VAR parameters: