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Traders Glossary

Drawdown

The peak-to-trough decline in an account's equity. Often expressed as a percentage. Small controlled drawdowns are normal; large drawdowns a

WellingtonCDFS Editorial August 3, 2026 1 min read

Drawdown

The peak-to-trough decline in an account's equity. Often expressed as a percentage. Small controlled drawdowns are normal; large drawdowns are hard to recover from.

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