Drawdown

Business, Legal & Accounting Glossary

Definition: Drawdown


Drawdown

Quick Summary of Drawdown


Reduction in account equity from a trade or series of trades.




Full Definition of Drawdown


A drawdown is the percentage loss from the high to the low for a fund or portfolio. It is typically measured from one high to the bottom occurring before the next high.


Examples of Drawdown in a sentence


You need to make sure that you are doing the right thing any time you have decided to make a drawdown.

The drawdown had occurred because of the recent transactions facilitated by the broker at the wishes of the new client.

The United States ordered a drawdown of troops in Afghanistan because the mission had been completed and they were no longer needed.


Related Phrases


Sterling ratio
income drawdown
peak-to-valley drawdown


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/drawdown/
Modern Language Association (MLA):
Drawdown. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 29, 2024 https://payrollheaven.com/define/drawdown/.
Chicago Manual of Style (CMS):
Drawdown. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/drawdown/ (accessed: March 29, 2024).
American Psychological Association (APA):
Drawdown. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/drawdown/

Definition Sources


Definitions for Drawdown are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 30th October, 2021 | 0 Views.