A drawdown is a decrease in the balance and equity on the trading account; to put it simpler, a drawdown is a loss. Drawdowns can be of two types: floating and fixed.
Tag: stop out
Playing on exchange markets, including Forex, a trader will inevitably come across such phenomena as Margin Call and Stop Out. At first they seem to be synonyms but in fact their meanings are completely different. Let us look at the terms more closely.