Source: https://mochatrade.com/learn/glossary/drawdown

# Drawdown
URL: https://mochatrade.com/learn/glossary/drawdown
Last modified: 2026-10-17

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](https://mochatrade.com/learn) and why [nine in ten Indian F&O traders lost money](https://mochatrade.com/learn/start-here/us-markets-for-indian-traders).

## Related terms

- Call option: https://mochatrade.com/learn/glossary/call-option
- Hedging: https://mochatrade.com/learn/glossary/hedging
- Strike price and expiry: https://mochatrade.com/learn/glossary/strike-price-and-expiry
- Cost of carry: https://mochatrade.com/learn/glossary/cost-of-carry
- Day trading and the PDT rule: https://mochatrade.com/learn/glossary/day-trading-and-the-pdt-rule
- Market capitalization: https://mochatrade.com/learn/glossary/market-capitalization

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