Drawdown

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.