TRADING GLOSSARY
Calmar ratio
The Calmar ratio compares annualised compounded return with the absolute size of the maximum drawdown over a specified measurement window. It describes return relative to the largest observed peak-to-trough decline, but does not capture every aspect of risk.
EXAMPLE
In a hypothetical three-year record, the annualised compounded return is 12% and maximum drawdown is 20%, giving a Calmar ratio of 12% ÷ 20% = 0.6.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure