How Does ADL Impact the Average Entry Price of the Remaining Position?
Auto-Deleveraging (ADL) does not change the average entry price of the remaining open position. ADL closes a portion of the position at the Mark Price at the time of the deleveraging.
The remaining open contracts retain their original entry price. The profit or loss realized from the closed portion is added to the account's equity, but the cost basis of the remaining position is unaffected.
