December 16th, 2013, 9:31 am
"What is Value at Risk and how is it used"So far there has been a good discussion about what VaR is, but not much about how it is used. How should it be used? (Other than allocating trading limits among traders/teams, which has been mentioned). Increase exposure when VaR is low, decrease when high? (Looks to me like this has historically been a terrible idea) If not that, what else?