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Drawdown

May 18, 2019 by Investor

Drawdown
Itis anextentof peaktrough decline, generally calculatedinpercentage form. As far as trading is concerned, drawdown signifies the reduction in the trading from a specific deal or several deals. For example, the trading account starts at nearly $10,000; you lose about $2,500 that day and nearly$2,500 theother day. One should know the drawdown of trade to reduce the risk management. Dealers generally take a note about their largedrawdown which is regarded as a large loss incurred below a trading plan.

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