Hi,
Please someone suggest what is the significance of VaR% section on NSE and how to use it for trading and investing
I am just giving brief explanation on this, if you wish to learn little bit more about VAR can check this.
Basically VAR answer with some confidence how much max an asset can loose in particular time-frame. For example in this case NSE VAR statistic of 6.73% for SBIN signifies with 99% probability ( confidence ) one can say SBIN can loose max of 6.73% for next one day (time-frame). This is a statistical measure. This is mainly used to understand /manage Risk by big portfolio managers/institutions etc.
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Thank you @siva-reddy.
I read the Varasity article but not understood 100% as some concept related to previous chapters.
What signifies “Extreme loss rate”? And in that particular section security Var?
In that case can start reading from 1st chapter of that module.
This is not any statistic as such, just 2nd level of margin charged upon VAR for extra safety.