drawdown

/ˈdrɔːdaʊn/
noun
  1. A reduction or decrease in the amount of something, especially money or resources.
    • The military ordered a drawdown of troops from the conflict zone.
    • Investors were worried about the steady drawdown in the pension fund's value.
    • The company announced a drawdown of its cash reserves to cover the unexpected costs.
  2. The act of taking money from a fund or account.
    • She made a drawdown from her retirement account to pay for the house repairs.
    • After the drawdown, the account balance dropped below the minimum required.
    • The loan agreement allows for a drawdown of up to $50,000 at any time.
  3. In finance, the peak-to-trough decline in the value of an investment or portfolio.
    • Investors should be aware of the drawdown risk before putting money into volatile stocks.
    • A long drawdown can test the patience of even experienced traders.
    • The fund experienced a maximum drawdown of 20% during the market crash.
What does "drawdown" mean? | whatsthatwordmean | whatsthatwordmean