Drawdown in Forex means the difference between balances and equity.
equity = balance + leverage + (floating profit – floating loss).
As you know, the equity value is changing depending on the profit or loss of the open trade, when the equity value falls short of balances, i.e. the trader has drawdown. That is, the sum of the trades at his disadvantage is greater than the ones in his profits.
Drawdown, it determines the maximum amount of losses an account can suffer. Therefore, traders should pay special attention to this parameter in their trading system.