🔥 Futures Trading Essentials: Insurance Funds and ADL
If a liquidation order closes at a price worse than the bankruptcy price, the insurance fund covers the difference first. If the fund runs out, profitable positions on the other side absorb the loss—that’s ADL.
During sharp price swings, execution slippage can be significant. Leave more buffer when using high leverage, and don’t stubbornly hold on right next to your liquidation price.
By the way: $BTC is currently at 83018 (+0.96% over 24h).
What would you like to hear about next? Wallets or something else?
#BTC
Just a few notes, not trading advice.
If a liquidation order closes at a price worse than the bankruptcy price, the insurance fund covers the difference first. If the fund runs out, profitable positions on the other side absorb the loss—that’s ADL.
During sharp price swings, execution slippage can be significant. Leave more buffer when using high leverage, and don’t stubbornly hold on right next to your liquidation price.
By the way: $BTC is currently at 83018 (+0.96% over 24h).
What would you like to hear about next? Wallets or something else?
#BTC
Just a few notes, not trading advice.