What is drawdown?

I am a bit confused about the term drawdown ,is it about the trades who are closed with loss or it,s the unrealized profit and loss of our opened positions ?
Thanks
Safe Trading.

Usually only closed positions that are considered as a drawdown on performance charts, but it really depends on the context. Drawdown by equity for instance means that even open negative positions are considered - which is in my opinion is more important.

[B]Yes I agree!
we can define Drawdown depends on the context but in this scenario I would say its reduction in account equity from trade or series of trades. Drawdowns also educate us to determine an investment’s financial risk.
=this is just an opinion=[/B]

it is the third sure thing in life: death, taxes, and drawdown

100% supporting this as a definition

I would agree, and add the following, more specific definition:Max Drawdown Definition.