> ## Documentation Index
> Fetch the complete documentation index at: https://docs.activeviam.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Incremental measures

> The Incremental measures evaluate the impact of a trade or a group of trades (‘current scope’) on the grand total result, by comparing it with a computation ...

The Incremental measures evaluate the impact of a trade or a group of trades (‘current scope’) on the grand total result, by comparing it with a computation as if the given trade or aggregate of trades were hypothetically removed.

$$
M^{incremental}(\text{scope})=M(\text{portfolio}) - M(\text{portfolio excl scope})
$$

## Example

In the following example, the [VaR Incremental Booking](../cube/measures/var/value-at-risk) measure shows the impact of the three sub-portfolios on the firm-level [VaR](../cube/measures/var/value-at-risk) number.

<Frame>
  <img src="https://mintcdn.com/activeviam/gaoX7QceXzVFVfYn/solutions/market-risk/6.0/images/incremental-var.png?fit=max&auto=format&n=gaoX7QceXzVFVfYn&q=85&s=352441766803cc0af8e0ce3b6a61843a" alt="Incremental IMCC example" width="1694" height="432" data-path="solutions/market-risk/6.0/images/incremental-var.png" />
</Frame>

* The left pivot table shows that the [VaR Incremental Booking](../cube/measures/var/value-at-risk) for the business line “Equities” is +15.414, which means, that this portfolio has a **positive** +15.414 impact on the firm-level [VaR](../cube/measures/var/value-at-risk)
* To validate the incremental measure for the business line “Equities”, let’s compute firm-level VaR with a filter excluding this node (on the right pivot table), then the VaR is -609k which is 15.414 lower (-593k - (-609k))

## See also

* [Component Measures](./component)
* [LEstimated Measures](./lestimated)