Skip to main content

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.

What Is ‘Effective Leverage’ and Why Might It Differ from the Platform’s Stated Leverage?
How Does the Concept of “Effective Leverage” Differ from Stated Leverage?
How Does the “Auto-Deleveraging” (ADL) System Work in a Derivatives Exchange?
What Is “Auto-Deleveraging” (ADL) and When Is It Used?