S&P 500 · SPY
754.37
▼ -2.75 (-0.36%)
DOW JONES · DIA
523.15
▲ +0.68 (+0.13%)
NASDAQ · QQQ
679.89
▼ -8.28 (-1.20%)
GOLD · GLD
$355.45
▲ +0.56 (+0.16%)
OIL (WTI) · USO
$145.58
▼ -0.49 (-0.34%)
BITCOIN
$64,330.26
▼ -3,932.47 (-5.76%)
--:--:--
NYSE · Live ET

Drawdown

What is Drawdown?

A drawdown is the decline from a peak to a later low in the value of an investment or portfolio, usually shown as a percentage.

Why it matters

Maximum drawdown shows the worst fall an investment has suffered and helps you judge whether you could stomach it. A 50% drawdown requires a 100% gain to recover.

Related terms

Explore on Investz

Share this termEmailXLinkedInFacebookRedditWhatsApp

General education, not investment, tax or legal advice. Read our disclosures.

More