What is Value at Risk (VaR)?
Value at Risk (VaR) (also called var) — A statistical estimate of the maximum loss a portfolio could face over a period at a given confidence level.
In simple terms
A 1-day 95% VaR of ₹1 lakh means losses should exceed that only ~5% of days.
Why Value at Risk (VaR) matters when you invest
Understanding value at risk helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Value at Risk (VaR) — frequently asked questions
What is Value at Risk (VaR)?
A statistical estimate of the maximum loss a portfolio could face over a period at a given confidence level.
What does Value at Risk (VaR) mean in the stock market?
A statistical estimate of the maximum loss a portfolio could face over a period at a given confidence level. A 1-day 95% VaR of ₹1 lakh means losses should exceed that only ~5% of days.
Can you give an example of Value at Risk (VaR)?
A 1-day 95% VaR of ₹1 lakh means losses should exceed that only ~5% of days.
Put it into practice — open a free account.
Enter your mobile number to get started — then download the ROAR app to finish KYC in about 10 minutes.