From drawdown rules to payout splits — every term you need to understand, master, and pass your challenge.
Max drawdown (maximum drawdown) refers to the largest decline in a trading account’s balance from its peak to its lowest point over a period of time. It is usually expressed as a percentage or fixed amount and is a key measure of risk. Max drawdown helps traders understand how much they could potentially lose before recovering
Learn moreMargin trading is the practice of using borrowed funds from a broker to trade financial assets, allowing traders to open positions larger than their available capital. The trader deposits a margin — a fraction of the full position value — as collateral. While margin trading can amplify profits, it equally amplifies losses and carries the risk of a margin call.
Learn moreMIRR, or Modified Internal Rate of Return, is a financial metric that improves on the traditional IRR by addressing its limitations, particularly the assumption that cash flows are reinvested at the same rate as the IRR itself. MIRR assumes that positive cash flows are reinvested at the firm's cost of capital and that initial outlays are financed at the financing cost. It provides a more realistic measure of an investment's profitability.
Learn moreExplore all glossary terms currently grouped under the letter "M".
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