Draw Down

Trading Basics

Draw Down

The amount the equity balance in a trading account falls by, either in a trade or time period.

Other Trading Basics

Annuity

A guaranteed income for the rest of someones life.

Historically purchased with pension lump sums.

The buyer is swaping cash now for future income.

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ABS

Asset-backed securities.

These are securities backed by assets, like mortgages, which are claimable if the creditor defaults.

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