Value-At-Risk (“VAR”) utilizes historic price data to simulate a probability distribution of possible future prices for each position within a portfolio or trading position. VAR measures are particularly sensitive to projected volatility. Using common parameters like 99%% confidence interval over a one year horizon, VAR expresses the expected maximum loss (or worst loss) over a target horizon within the given confidence interval. Thus, the relative market risk can be measured across all financial markets and product sectors, and recalculated continually (in rear real-time) as prices and positions change. There are significant drawbacks to VAR including non-linear changes in portfolio positions, such as digital options.