Locking on forex – how to save deposit from Margin Call

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Locking on forex – how to save deposit from Margin Call

If you have a large drawdown on the deposit and you want to reduce it and return your money back, then you have a solution – this is forex locking. Right now, lock all your negative orders!

In order to lock, it is necessary that the volume of buy orders be equal to the volume of sell orders. Suppose you have an opened buy order on EURUSD with a volume of 1.5 lots and opened sell order with a volume of 0.5 lots. To lock negative drawdown, you need to open an additional sell order with a volume of 1.0 lot.

Once you are locked your drawdown will not increase from now on and you can safely watch this video to the end to learn how to reduce your locks profitably and additionally make money.

But lets do it step by step …

To be honest, you can reduce locks manually, but also you can do it completely automatically. Personally, I developed an expert advisor that helps me day and night, so I don’t worry that I will miss the opportunity to reduce the volume of negative orders and thereby reduce the drawdown, because sometimes the drawdown decreases even when I sleep.

So, my expert adviser can fully automatically work with drawdowns of up to -60%, can reduce the volume of negative orders, can reduce locks and most importantly, it can make money on Forex.

If you have a big drawdown on deposit, then watch this video and you will learn how to reduce the volume of negative orders, reduce locks and make money on Forex.

If you don’t understand and cope with how to reduce the drawdown on the deposit, then contact me and I may be able to help you reduce your drawdown.

Let’s begin to consider what forex locking is and how to get out of it.

What is locking

Locking on Forex, as you already understood, is when the volume of buy orders on one instrument is equal to the volume of sell orders, so it doesn’t matter which way the price of the instrument goes: up or down – your negative drawdown will be fixed. Swaps will be charged every day (in most cases they are negative), but the increase in your drawdown will be insignificant. In any case, you will have time to analyze the situation in the market to make the right decision.

There is at least two types of locks:

  • POSITIVE – a situation where the open price of a buy order (s) is lower than the price of an sell order (s).
  • NEGATIVE – a situation where the open price of a buy order (s) is higher than the price of an sell order (s).

In both cases, the volume of sell orders is equal to the volume of buy orders.

However, from my experience I can say that a negative lock occurs more often.

Let’s look at the scenarios for reducing lock.

Scenario 1: Reduce negative volume by 50%

This scenario is the simplest and most effective.

The main goal of this technique is to reduce the negative volume by at least half. To reach this you reduce the negative volume (by 50%) by closing the positive volume (by 100%).

In other words, when the sum of a positive order is equal to half the amount of the negative, then the positive order (s) is closed completely, and the negative is 50% of the volume.

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The initial volume of each locked order must exceed the minimum lot of 0.01, otherwise it will be impossible to reduce volume by 50%.

Positive aspects of this scenario:

  • If, after reducing the negative volume, open a new order with the volume equal to the current negative volume, then the closing price of both orders (averaging) will shift 50% closer to the price.
  • If you do not increase open volume (that means, do not open a new order) and the price continues to move in the negative direction, then the speed of increase in drawdown (negative balance) will be slower by 50%.

Do you think that 50% of negative volume is the maximum amount that can be reduced? Write in the comments what you think ….

Let’s look at a real example from trading. Let’s suppose that I have a lock with a total volume of 1.0 lots. The distance between the positive and negative orders is 50 pips. The price moves by 10 pips. Let’s calculate how many lots you can reduce from negative volume. In this case, it does not matter in which direction the price is moving, the main condition is: long-term price movement from the extreme order (highest or lowest order).

The table shows that to reduce the volume by 2 times (by 50% of the negative volume), the price must go a distance of +50 pips from the extreme positive order.

If the price passes +100 pips (-200 pips from the negative and +150 pips from the positive order), then the negative volume can be reduced by 0.75 lots, which is 75%. In other words, when closing a negative volume, the volume of only -0.25 lots will remain open.

However, do not forget that the longer your orders in the market, the more swaps (usually negative ones) will be charged to you.

I hope that you understand how it is profitable to reduce the lock.

Those who didn’t guess, for those, I’ll summarize: you need to wait for a big price movement in order to reduce the negative volume. You should also not forget that locking is not a way to make money, but a way to reduce the volume, in order to reduce the speed of increase of negative drawdown.

The movement should be such as to reduce the volume by at least 50% or more. If you can’t reduce the volume by 50%, I don’t recommend reducing the lock.

Now open your chart and see how far the price has moved. How many percent can you reduce from your negative volume?

If you can reduce the volume by at least 50%, then I will consider that my experience was useful to you and also helped to make a profit. If you were unable to reduce the lock correctly and you need my help with your drawdown, please contact me and I may be able to help.

I trade both with stop loss and with the locks. How do you trade? Do you use locks? How much did you earn with locks? Have you ever reduced locks and did you succeed?

And finally, thank you for watching my video to the end! I hope you learned something new and now you can convert this knowledge into money!

If you liked my video, subscribe to my channel and, of course, like it.

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