Liquidity at risk

Liquidity at risk (LAR) is a measure of how much money you might need to give away if you need to sell a lot of your investments quickly. It's like a worst-case scenario. For example, if the stock market crashes, you may need to sell some stocks to get cash to pay your bills. If you have a lot of investments, you may need to sell a lot of them to get enough cash quickly. LAR looks at how much money you could lose by selling off your investments all at once in a worst-case scenario.