https://www.investopedia.com/terms/d/drawdown.asp
What Is a Drawdown?
A drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund. A drawdown measures the historical risk of different investments, compares fund performance, or monitors personal trading performance. It is usually quoted as the percentage between the peak and the subsequent trough. If a trading account has $10,000 in it, and the funds drop to $9,000 before moving back above $10,000, then the trading account witnessed a 10% drawdown.
Drawdown in Banking vs. Drawdown in Trading: An Overview
The term "drawdown" appears in both the banking world and the trading world, but it has very different meanings within each context. In banking, a drawdown refers to a gradual accessing of credit funds, while in trading, a drawdown refers to a reduction in equity.
