Let's talk about the insurance fund and ADL.
The bankruptcy price is the price at which losses on a position equal its entire margin; liquidation is triggered before the price reaches the bankruptcy price.
One thing many people overlook: ADL is designed to prevent losses from going uncovered. A side effect is that the system may reduce some profitable positions.
主动 stop-losses usually result in smaller losses than waiting to be liquidated: liquidation typically comes with an additional liquidation fee.
Coin mentioned in this post: $BTC , current price 83802 (24h +2.85%).
Just a record of market activity. Make your own trading decisions.
The bankruptcy price is the price at which losses on a position equal its entire margin; liquidation is triggered before the price reaches the bankruptcy price.
One thing many people overlook: ADL is designed to prevent losses from going uncovered. A side effect is that the system may reduce some profitable positions.
主动 stop-losses usually result in smaller losses than waiting to be liquidated: liquidation typically comes with an additional liquidation fee.
Coin mentioned in this post: $BTC , current price 83802 (24h +2.85%).
Just a record of market activity. Make your own trading decisions.