drawdown

In the fast-paced world of foreign exchange trading, where fortunes can change in the blink of an eye, understanding the concept of drawdown is akin to wielding a compass in a stormy sea. Drawdown, the measure of decline from peak to trough in investment value, serves as a guiding light for traders navigating the tumultuous waters of the forex market. From unexpected market shifts to misjudged trades, drawdown reflects the setbacks faced by traders, illuminating the path toward risk assessment and capital preservation.