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VaR margin

Value-at-Risk margin is a statistical margin component charged on cash-market positions based on price volatility.

Clearing corporations compute VaR margins using historical price moves and methodology circulars.

Higher volatility stocks attract higher VaR percentages.

Extreme Loss Margin and other add-ons can sit on top of VaR.

Margin reports on contract notes often show VaR as a distinct line item.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.