Drawdown

Drawdown is the fall from an account's peak to its trough, in percent. Recovery is lopsided: minus 50% needs plus 100% to get back, minus 80% needs plus 400%, which is why sizing is built around the worst path and why nine in ten Indian F&O traders lost money.

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In the help centreSee how leverage and margin work on Mochatrade
  • Call optionA call option is the right to buy at the strike before expiry. Strike 24,200 and premium 80 means profit only above…
  • HedgingHedging is taking a second position that loses when your first one wins, to cut risk. Market makers hedge every fill…
  • Strike price and expiryThe strike price is where an option pays; expiry is when a contract ends. Expiry is what ties a future to the real…
  • Cost of carryCost of carry is what it costs to hold a position over time: storage, insurance and interest, minus any income. It is…
  • Day trading and the PDT ruleDay trading is opening and closing a position in the same session. The PDT rule is FINRA's pattern day trader rule: a…
  • Market capitalizationMarket capitalization is share price times shares outstanding, the market's price for the whole company. Index weights…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

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