What Is Drawdown?

How much in percent terms the asset goes or can go down.

Drawdown refers to the peak-to-trough decline in the value of an investment, usually measured as the percentage of an investment’s peak value. It is a measure of the risk of an investment, as it indicates the amount that an investment can decline before it reaches a new high. Drawdown can also refer to the period of time during which an investment’s value is in decline.

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