Drawdown
Breakeven / buffer lock
Also searched: breakeven lock · buffer lock · trailing lock · drawdown lock
On many trailing accounts the line stops trailing once you've earned enough profit — it locks at your starting balance (or a small buffer above it) and no longer follows further gains up.
Definition
Some trailing drawdowns don't trail forever. Once your profit reaches a set threshold, the line 'locks' — it stops chasing new highs and settles at a fixed point, usually your starting balance or a small amount above it.
After the lock, the account behaves like a static one: further profit no longer drags the floor up behind you. The buffer you fought for is finally yours to keep.
The lock point is the tell. Some firms lock exactly at breakeven (your starting balance); others lock a fixed buffer above it, so you keep a small cushion of guaranteed room.
Why it fails evaluations
The dangerous window is BEFORE the lock. Until you've earned the buffer, the line is still trailing every high — this is where most trailing-account breaches happen, right as a trader starts to profit and stops watching the floor.
Traders also leave the lock on the table by not knowing their exact distance to it — they de-risk too early and never earn the buffer, or they don't realize they've locked and keep managing risk as if the floor were still moving.
Where each trailing firm's line locks
Locks above start (keeps a buffer)
3 firmsThe line settles a fixed amount above your starting balance once earned.
Locks at breakeven (starting balance)
7 firmsThe line settles exactly at your starting balance and stops trailing.
Trails without locking
4 firmsThe line keeps following new highs — no lock point.
Static-drawdown firms have nothing to lock (the line never moved to begin with). Lock behavior can vary by platform at some firms — the firm page notes any such exceptions.
FAQ
What does it mean when a trailing drawdown locks?
It means the trailing floor stops following your profit up and settles at a fixed point — usually your starting balance or a small buffer above it — after which the account effectively becomes static.
When does the drawdown line lock at breakeven?
Once your profit reaches the firm's lock threshold (typically the drawdown amount plus any buffer). Before that point the line is still trailing every new high.
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