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Definition of drawdown

drawdown

/ˈdrɔː.daʊn/
draw · down

Plural:drawdowns
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drawdown Lexical Profile

drawdown Game Scores & Validity

• noun

1

A reduction in the size, number, or availability of something, especially a gradual withdrawal of military forces or a depletion of a supply or reserve.

Example

"The administration announced a phased drawdown of troops stationed in the region over the next two years."


2

In finance, the peak-to-trough decline during a specific period for an investment, trading account, or fund, or the act of accessing funds from a credit facility or pension.

Example

"The portfolio manager implemented strict risk controls to limit the maximum drawdown during market downturns."


3

In hydrology, the lowering of the water level in a reservoir, well, or aquifer resulting from the withdrawal or release of water.

Example

"Continuous pumping from the municipal well caused a noticeable drawdown in the surrounding water table."

Synonyms
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Antonyms
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Word Nuance & Usage

The noun is written as a single word ('drawdown'), whereas the corresponding phrasal verb is written as two separate words ('draw down').

Cite this Entry


Wordmom. (2026). Definition of Drawdown. In Wordmom Dictionary. Retrieved Nov 1, 2026, from https://wordmom.com/dictionary/drawdown
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