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Trump Excel demonstrates how to lock formulas in Excel to prevent accidental changes when sharing files. By default, all cells in Excel are locked, but protecting them is necessary to restrict access. This feature ensures that formulas are not deleted or altered, which could lead to incorrect calculations in worksheets. To lock formulas, users must enable the lock property and protect cells before sharing files with colleagues, managers, or clients. Protection ensures that only approved individuals can modify the formulas, maintaining data integrity.