adl

Yesterday I experienced ADL on ESPORT even though my position had a healthy margin and was far from liquidation.

It made me learn more about how ADL works. I understand that it is used to manage risk during extreme market moves and help keep the platform stable.

At the same time it raises an interesting question.

When the market moves against us nobody adds margin to save our position and we accept the risk of liquidation. But when the market moves in our favor ADL can sometimes close a position before we decide to exit.

I understand why ADL exists but I can also understand why many traders are surprised when it happens.

Have you ever experienced ADL and what do you think about it?

#BinanceSquare #cryptotrading #FuturesTrading #ADL