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A new tool exclusive to clients of Swissquote Bank: VaR (Value at Risk)


What is VaR?

Definition :
VaR or Value at Risk
VaR is an indicator of risk that assesses from one day to the next the amount of money that you risk losing with a 95% probability that your losses will be lower than the amount displayed.
For example: If the VaR for my portfolio is CHF 600 then I have a 5% chance of losing more than CHF 600 between now and tomorrow. Or inversely that I have a 95% chance of losing less than CHF 600.

VaG or Value at Gain
VaG or Value at Gain is to return what Value at Risk is to losses.
For Example: If the VaG for my portfolio is CHF 600 then I have a 5% chance of “gaining” more than CHF 600 between now and tomorrow. Or inversely that I have a 95% chance of gaining less than CHF 600.

This new tool applies the VaR from three different standpoints:

1) Your entire portfolio
2) By currency or by financial product
3) Details of each position of your portfolio



The VAR is an indicator of market risk that is automatically calculated every night related to your investment strategy.