™A $10,000 position moving 10% changes by $1,000; drawdown helps place that movement in the context of the wider portfolio.
Risk & Portfolio
Drawdown
A decline from an asset or portfolio’s previous peak to a later low.
Plain-English context
Why it matters
This concept helps describe how one position or behavior can affect the resilience of an entire portfolio.
Assuming Drawdown removes risk rather than describing or redistributing part of it.
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