Does ADL Affect a Trader's Realized Profit? ⎊ Path

Does ADL Affect a Trader’s Realized Profit?

No, ADL only affects a trader's unrealized profit on an open position. When a position is deleveraged, the trade is closed at the mark price, and the profit is realized and credited to the trader's account.

The amount deleveraged is what is used to cover the shortfall, but the trader still realizes the profit up to the point of deleveraging.

What Is the Difference between Realized and Unrealized PNL?

Does ADL Affect a Trader’s Realized Profit or Unrealized Profit?

How Does MTM Relate to the Concept of Realized and Unrealized Gains/losses?

What Is Realized P&L versus Unrealized P&L?

How Does the Concept of “Settlement” Convert Unrealized P&L to Realized P&L?

How Does a Socialized Loss System Handle Unrealized Profits?

What Is the Difference between Realized and Unrealized P&L in a Marked-to-Market System?

Can a Trader Use Unrealized Profit from a Different Isolated Position to Prevent Liquidation?