In typography, a true drop cap (dropped capital) is governed by a strict set of alignment rules so it looks intentionally designed rather than just like a mistakenly oversized letter.

Here is exactly how it should line up with your paragraph text:
1. The Top Alignment (Cap Height)
The top edge of the drop cap should align perfectly with the cap height of the first line of the paragraph.
- If you draw a horizontal line across the top of the giant letter, it should skim right across the top of the regular-sized capital letters on line one.
- It should not stick up above the first line of text. (If it sticks up above the text but shares the same baseline as the first line, that is called a "raised cap," not a drop cap).
2. The Bottom Alignment (Baseline)
The bottom of the drop cap must sit exactly on the baseline of one of the subsequent lines of text.
- Depending on how large you want the letter, it might drop down to the 2nd, 3rd, or 4th line of the paragraph.
- Wherever it stops, its bottom edge must rest perfectly on the invisible line that the regular text is sitting on. It should never float halfway between two lines of text.
3. The Standoff (Padding)
The drop cap should have a consistent, visually pleasing margin on its right side so the body text doesn't crash into it.
- Because letters have different shapes, you often have to adjust this spacing manually (called kerning). For example, a square letter like "H" might need standard padding, while a letter that slopes away like "W" or "A" might allow the text to tuck in slightly closer for a cohesive look.