How to Calculate Value at Risk (VaR) to Measure Asset and Portfolio Risk

The calculation of Value At Risk (VaR) for a portfolio can be complex, especially for large numbers of positions. This video shows how the calculation is performed step-by-step and discusses how the elements of the VaR formula can be transferred from a longer-term investment context to a shorter-term trading context.

Value at Risk is used widely by investment banks and hedge funds and will be a valuable tool for traders to incorporate into their own trading decision-making.

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This is Episode 5 in the Darwinex 'Institutional-Grade Risk Management Techniques' Playlist:    • Institutional-Grade Risk Management Techni...  

Video Contents:
00:00 Introduction to the VaR Calculatuion
00:32 Why Darwinex?
01:27 How to Calculate Value at Risk (VaR)
04:56 Step-by-Step Approach to Calculating VaR
07:01 Calculating a Single Position VaR
10:28 Calculating Incremental VaR
11:05 Summary and Next Episodes

Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.

Risk disclosure: https://www.darwinex.com/legal/risk-d...