Risk Management: Basics of ‘Drawdown’

Risk Management: Basics of ‘Drawdown’

When we lose money on trades, this is known as a ‘drawdown’. Traders are often under the impression that when they have lost, for example, 20% of funds, that they need to claw back 20% to reach breakeven. This is not the case. In this webinar, we will explain some simple and easily applicable formulas to manage risk. 

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 41.94% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.Read our Risk Disclosure.

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