I have encountered two times the concept Capital at Risk and I dont know if they are the same or is just the same name for different things:
In the formula for position sizing of futures (volatility targeting), the formula to calculate de n° of futures contract the denominator is: risk lodging*equity and the schweser book says that is also called Capital at Risk.
Some pages after the schweser book says: Capital at Risk (CaR) equals the loss incurred when the position hits its stop loss.
I dont get if they are the same thing or just to concepts with the same name.
About the future contracts, I thought it was a way to calculate the sizing of how much to size the portfolio using future contracts to achieve the desired vol target for a CTA portfolios. I agree, two are different concepts.