VaR And Using In Forex Market

VaR(Value-at-Risk) developed recently is a new standard to manage financial risk. VaR not only is an effective instrument but also is becoming a scientific system now. China has already joined WTO, and its financial industry will face the challenges from the world. Thus, it is an important and urgent task to search for fitful methods and systems to manage risk. The trade of Forex deposit is the new trading form appeared in recent years. The income is large but the risk is high. Aiming at this problem, this article endeavor to depress the risk but stabilize the income through the way of risk measurement getting investment combination.This paper analyzed VaR's elements and application from statistics and mathematics, discoursed the method of VaR using statistical artifice estimates Finance Risk in a simple way. And selected Forex market from money markets as study area, with Forex deposit as study direction, using the idea of technical analyze united VaR elements to analyze some main Forex in Forex market. Analytic demonstration discussed the good and bad of each analytical method, educed the best technical artifice.Method: On the basis of Markowitz model, transform the problem of investment composition to the best solution of quadratic programming, and get the composition through calculating. After analyzing the predominance and inferior position of direct investment, combination investment and Arbitrage investment, educed Arbitrage investment is the low risk but stabilization income way of Forex trading.This model provides a kind of analytical method for Forex investors to analyze investment combination in Forex market, so that enriched the artifice of Forex analysis method.