Trading Notes | Insurance Funds and ADL
① A position is said to be bankrupt when its loss exceeds its entire margin. This often happens when prices move sharply and liquidation orders cannot be filled at normal prices.
② Auto-deleveraging (ADL) is the last-resort mechanism in the liquidation process. It is usually triggered when the insurance fund is insufficient to cover bankruptcy losses.
③ After ADL occurs, a position may be partially reduced. Be sure to review your original take-profit and stop-loss orders, as well as your hedging plan.
$BTC 83566.44（+2.48%）
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① A position is said to be bankrupt when its loss exceeds its entire margin. This often happens when prices move sharply and liquidation orders cannot be filled at normal prices.
② Auto-deleveraging (ADL) is the last-resort mechanism in the liquidation process. It is usually triggered when the insurance fund is insufficient to cover bankruptcy losses.
③ After ADL occurs, a position may be partially reduced. Be sure to review your original take-profit and stop-loss orders, as well as your hedging plan.
$BTC 83566.44（+2.48%）
#btc #BTC