The definition of a forex Drawdown is the same as for any other investment. A drawdown is a peak-to-trough decline for any given investment.Drawdowns in forex trading can be caused by a variety of factors such as a weak economy, political instability, or changes in central bank policy.Drawdowns are a normal part of trading and can occur in any market. They can be short-lived or last for a long time.The key to managing drawdowns is to have a plan in place to deal with them.Drawdowns can be managed in a number of ways, such as by using stop-loss orders, risk management tools, or by diversifying your portfolio.What is a drawdown in forex trading?A drawdown is a peak-to-trough decline for any given investment. Drawdowns are a normal part of trading and can occur in any market.They can be short-lived or last for a long time. The key to managing drawdowns is to have a plan in place to deal with them.Drawdowns can be managed in a number of ways, such as by using.