What Criteria Are Used to Select Profitable Traders for ADL?
Profitable traders are selected for Auto-Deleveraging (ADL) based on a ranking system. This ranking is typically determined by two main factors: the size of their profit and the level of leverage they are using.
Traders with higher profits and higher leverage are generally prioritized for deleveraging first. This system ensures that the most highly leveraged and profitable positions are reduced first, minimizing the overall impact on the market.
Glossar
ADL Indicator Lights
Indicator ⎊ Automated Dynamic Lighting (ADL) indicator lights, within the context of cryptocurrency derivatives, options trading, and financial derivatives, represent a visual cue system integrated into trading platforms or risk management dashboards.
Profitable Traders
Discipline ⎊ Consistently profitable traders in derivatives markets exhibit superior risk management discipline, strictly adhering to predetermined stop-loss levels and position sizing protocols.
Profitable Positions
Position ⎊ Profitable positions in derivatives trading refer to contracts where the current market value exceeds the initial cost or strike price, resulting in a positive mark-to-market gain for the holder.