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How Can a Trader Lower Their ADL Ranking without Closing Their Entire Position?

A trader can lower their ADL ranking by reducing their effective leverage and/or their unrealized profit. This is typically done by either reducing the position size (partially closing the trade) or by adding more margin (collateral) to the position.

Adding margin lowers the effective leverage by increasing the denominator in the effective leverage calculation, thus making the position less risky to the exchange.

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