Risk

What is drawdown?

How far an investment has fallen from its highest point.

Explained in more detail

It is the measure that matters emotionally, because it describes what you are actually living through. A 50% drawdown needs a 100% gain just to return to level, which is why avoiding large falls matters more than catching large rises.

An example

For instanceA holding that reached ₹100 and now trades at ₹62 is in a 38% drawdown.

Why this matters to you

You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.

On AlphaVik, any time drawdown appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.

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