How is Maximum Cumulative Loss different from drawdown?

Maximum Cumulative Loss represents the worst-case peak-to-trough loss over a given period, while drawdowns can occur more frequently and may not reflect the most extreme loss.

What strategies help reduce Maximum Cumulative Loss?

Diversification, stop-loss orders, hedging strategies, and adjusting leverage levels are effective ways to mitigate large cumulative losses.

How often should traders monitor Maximum Cumulative Loss?

Traders should regularly review this metric, especially during volatile market conditions, to ensure that their risk exposure remains controlled.

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Risk Analysis

What is MAXIMUM CUMULATIVE LOSS?

MAXIMUM DRAWDOWN PERCENTAGE

Maximum Drawdown Percentage represents the largest peak-to-trough decline as a percentage of the peak price, providing a relative measure of loss.

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What is MAXIMUM CUMULATIVE LOSS?

MAXIMUM DRAWDOWN PERCENTAGE

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