What Criteria Are Used to Rank Traders for the ADL Process?
Traders are typically ranked based on a combination of their profitability and their effective leverage. The ADL system targets the most profitable and highest-leveraged opposing positions first.
This is because these traders have the largest unrealized profits and the highest risk exposure, making their forced closure less disruptive to their overall portfolio and a more efficient way to cover the shortfall. The ranking is often displayed as a tiered indicator on the trading platform.