What is Drawdown?
Drawdown (also called max drawdown) — The peak-to-trough fall in an investment’s value, a measure of the worst loss an investor would have endured.
In simple terms
A 40% drawdown needs a ~67% gain just to break even.
Why Drawdown matters when you invest
Understanding drawdown helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Drawdown — frequently asked questions
What is Drawdown?
The peak-to-trough fall in an investment’s value, a measure of the worst loss an investor would have endured.
What does Drawdown mean in the stock market?
The peak-to-trough fall in an investment’s value, a measure of the worst loss an investor would have endured. A 40% drawdown needs a ~67% gain just to break even.
Can you give an example of Drawdown?
A 40% drawdown needs a ~67% gain just to break even.
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