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Word: value at risk (lookup usage) (lookup stats)


Meaning:

Noun:

  • banking A widely used measure of the risk of loss on a specific portfolio of financial assets. For a given portfolio, probability and time horizon, VaR is a threshold value such that the probability that the mark-to-market loss on the portfolio over the given time horizon exceeds this value (assuming normal markets and no trading) is the given probability level.

Source: Wiktionary | Src Info »