What Criteria Determine Which Profitable Traders Are Selected for ADL? ⎊ Path

What Criteria Determine Which Profitable Traders Are Selected for ADL?

Profitable traders are typically ranked based on two main factors: their overall profitability and the amount of leverage they are using. Traders with the highest profit and highest leverage are the first to be auto-deleveraged.

This system aims to minimize the number of traders affected by closing the largest, most leveraged opposing positions first.

What Steps Can a Profitable Trader Take to Lower Their ADL Ranking?

Why Is ADL Generally Preferred over Socialized Loss by Major Exchanges?

How Are Traders Selected for Auto-Deleveraging?

What Criteria Determine the ADL Ranking of a Profitable Trader?

How Is a Trader’s Position Size Factored into the ADL Process?

Does ADL Affect a Trader’s Realized Profit or Unrealized Profit?

How Are Traders Ranked for the Auto-Deleveraging (ADL) Process?

What Is the Primary Goal of the ADL Ranking System?

Glossar

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.