What Is a Hari Loss?
A hari loss is a trading loss recorded on a single day when the value of a position or portfolio falls below its entry cost. It is commonly used in daily mark-to-market reporting to track short-term performance and risk exposure.
How Hari Loss Works in Trading
Traders and funds calculate hari loss by comparing the closing price of an asset against the purchase or average entry price for that day. If the closing price is lower, the difference is recorded as a hari loss for the session. This metric helps investors monitor daily drawdowns and manage position sizing.
Why Hari Loss Matters
Tracking hari loss helps traders identify patterns in daily performance and adjust strategies to control risk. It also supports compliance and reporting requirements for regulated firms. For more on daily trading loss calculations, see Investopedia.
