Glossary · from the DESK dictionary
Drawdown
The decline from a peak to a trough in a portfolio or asset over a specific period.
In plain words
Shows how much an investment lost in value at its worst point, before potentially recovering.
What it means for traders
A foundational, widely used risk-management metric.
Common pitfalls
A current drawdown gives no guarantee about future performance or recovery time.
Related terms
Equity Curve · Maximum Drawdown · Loss
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.