How to prevent deposit loss.

For some reason, novice traders turn to the topic of draining their deposit only after they have completely lost all their available capital.

Although such a phenomenon can only be prevented, and in no case corrected, there is simply no way to return lost money, since the loss of the deposit occurs precisely through the fault of the trader.

Moreover, even setting a stop loss and trailing stop cannot always save you from this trouble.

What needs to be done to prevent the broker from forcibly closing your position?

1. A banal stop loss - helps in most cases; it should always be set, even if you are going to not leave the deal unattended for a minute.

The stop loss size must 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 of hundred points.

Therefore, if the volume of your transaction does not exceed the size of the deposit a hundred times, it is simply physically impossible to lose the entire amount.

For example, on account 1000 a deal of 1 lot was opened, the price went against you by 1%, as a result you were left without money, with a transaction volume of only 0.1 lot and the same price change, you will already lose only 10% of the deposit.

The arithmetic is quite simple; the greater the difference between depot and volume, the higher the risk.

3. A gap in Forex is the enemy of stop loss; it is this phenomenon that prevents the order from being closed by stop loss; the position is closed only upon completion of the price gap, at the first quote.

As a result, if at the beginning of the gap the financial result was 0, and the size of the gap was 100 points, you automatically receive a loss of these same 100 points.

Sometimes this even leads to the appearance of negative deposits. To prevent this from happening, try not to leave positions on weekends and holidays, as well as close before the release of particularly important news.

4. Automated advisors - they promise mountains of gold, but trade as they want.

In most cases, simply draining the trader’s deposit, although the description says there is a stop loss. There are two possible solutions - do not trade advisors or constantly monitor their work.

These are practically all the points that you can influence in order to prevent the loss of your deposit when trading on the foreign exchange exchange.