Investment Glossary · Quick read · No ads
Drawdown
The short answer
The peak-to-trough decline in the value of an investment or portfolio over a specific period, used as a measure of downside risk.
What is Drawdown?
The peak-to-trough decline in the value of an investment or portfolio over a specific period, used as a measure of downside risk.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
Educational information only. Nothing on this page is personal financial, tax or legal advice. Investing involves risk, including the possible loss of principal.
