How Does the Exchange Notify a Trader That Their Position Has Been ADL’d?
When a position is Auto-Deleveraged, the exchange typically provides an immediate notification to the affected trader. This notification is usually delivered through the trading platform's user interface, via email, or sometimes through an API message.
The notification specifies the amount of the position that was reduced and the time of the deleveraging event. Transparency is key, although the action is automatic and cannot be reversed by the trader.
Glossar
Adl
Adjustment ⎊ In cryptocurrency derivatives and options trading, Adjustment refers to the process of modifying contract terms, typically strike prices or expiration dates, to reflect significant underlying asset price movements or market events.
Immediate Notification
Alert ⎊ Immediate Notification, within the context of cryptocurrency derivatives, options trading, and related financial instruments, signifies a time-critical communication protocol designed to rapidly convey information impacting position risk or market integrity.