Drawdown
Understand how position size, stops, risk/reward and account exposure affect outcomes.
Drawdown
Drawdown measures a decline from a previous equity peak. Recovery is measured from the lower base, so percentage losses and required recovery gains are not symmetric. Track realized and open-position effects consistently.
Example
A decline from $1,000 to $800 is 20%; recovering to $1,000 requires 25% growth from $800.
All educational content is provided for general information and educational purposes only. It does not constitute investment advice, financial advice or a recommendation to buy or sell any financial instrument. Trading leveraged products involves significant risk and may result in the loss of invested capital.