Drawdown is a measure of downside volatility used to evaluate the performance of assets, portfolios and trading performance.

Drawdown is typically calculated from peak to trough within a given period of time. In other words, from the highest point to the lowest point.

Draw-down is also most often presented as a percentage rather than as a monetary figure. This is because an asset can experience a draw-down and recovery without the monetary value of the asset or account in question being affected.

It is a measure that a potential investor will want to know about an asset or fund’s performance in order to determine the riskiness of the investment in question relative to other available options.

visa mastercard paypal transfer skrill sofort giropay trustly

Open your EverFX account

It takes only a few minutes and even fewer clicks to enter the promising and exciting world of trading. Take the first step by clicking on the link below.
Trading involves significant risk of loss