What Notification Is Given to a Trader Who Is ADL’d?
When a trader is auto-deleveraged, they receive an immediate notification, often via email, app notification, or a prominent on-screen alert. This notification confirms the ADL event, specifies the size of the position that was closed, and shows the price at which the deleveraging occurred.
The remaining position size and margin are then updated.
Glossar
Remaining Position Size
Exposure ⎊ Remaining Position Size, within cryptocurrency derivatives, represents the net directional risk undertaken by a trader or institution, quantified as the notional value of the open contract multiplied by the price sensitivity.
Notification
Trigger ⎊ A notification within cryptocurrency, options trading, and financial derivatives frequently functions as a trigger for automated strategies, signaling the fulfillment of pre-defined conditions related to price movements, volatility shifts, or order book imbalances.