How to prevent deposit drain.

For some reason, novice traders only address the issue of deposit losses after they've completely lost their capital.

Although this can only be prevented, not corrected, there's simply no way to recover lost funds, as deposit losses are the trader's fault.

Moreover, even setting a stop-loss or trailing stop isn't always enough to prevent this. So

, what should you do to prevent your broker from forcibly closing your position?

1. A simple stop loss is helpful in most cases and should always be set, even if you plan to keep a close eye on the trade.

The stop loss size should be set immediately when opening a new order.

2. Leverage: exchange rate movements rarely exceed 2-3 percent over a short period; more often, sharp price movements are limited to a couple hundred pips.

Therefore, if your trade volume does not exceed your deposit by a hundred times, losing the entire amount is simply physically impossible.

For example, if you open a 1-lot , and the price moves against you by 1%, you end up losing money. With a trade volume of only 0.1 lots and the same price change, you would lose only 10% of your deposit.

The arithmetic is quite simple: the greater the difference between the deposit and the volume, the higher the risk.

3. A gap in Forex is the enemy of a stop loss; this phenomenon prevents a stop loss order from being closed; the position is closed only after the price gap ends, at the first quote.

As a result, if the initial financial result was 0 and the gap size was 100 pips, you automatically incur a loss of those same 100 pips. Sometimes this even leads to negative deposits.

To prevent this, try not to hold positions over weekends and holidays, and close them before important news releases.

4. Automated advisors - they promise mountains of gold, but trade as they please. In most cases, they simply drain the trader's deposit, even though the description mentions a stop loss.

There are two solutions: don't trade with advisors or constantly monitor their operation.

These are practically all the factors you can influence to prevent deposit losses when trading on the forex market.