Navigation

Drawdown

« Back to Glossary Index

Drawdown is a measure of peak-to-trough decline, usually given in percentage form. In trading, drawdown refers to the reduction in your trading account from a trade or a series of trades.

For instance, your trading account is initially at $10,000 then you lost $2,500 today and $2,500 the next day. Your account would then be at $5,000 and you would

« Back to Glossary Index
"To establish true self-esteem we must concentrate on our successes and forget about the failures and the negatives in our lives."
Dennis Waitley
Clicky Web Analytics