How does the auto deleverage queue work on Binance?

3 answers

• Andhika MuldaniOct 07, 2021 · 4 years ago
  The auto deleverage queue on Binance is a mechanism designed to prevent liquidation cascades in the event of extreme market volatility. When a trader's position is liquidated, the system automatically deleverages the position by transferring it to the auto deleverage queue. This queue is then used to gradually close the position at a better price, reducing the impact on the market. It helps to prevent large market orders from causing excessive price slippage and ensures a fairer liquidation process for all traders.
  520

  260
• Dmitry SinykovichSep 21, 2022 · 3 years ago
  The auto deleverage queue is an important risk management tool on Binance. It helps to protect traders from sudden market movements and reduces the risk of forced liquidation. By gradually closing positions in the queue, Binance aims to minimize the impact on the market and provide a more stable trading environment. It's a feature that many traders appreciate, as it allows them to manage their risk more effectively and avoid unnecessary losses.
  448

  150
• PranaywanjaDec 20, 2022 · 3 years ago
  The auto deleverage queue is a unique feature offered by Binance. It sets Binance apart from other exchanges and demonstrates their commitment to providing a safe and fair trading environment. Unlike other exchanges that may immediately liquidate a position at market price, Binance's auto deleverage queue allows for a more controlled and gradual liquidation process. This can be particularly beneficial during times of extreme market volatility, as it helps to prevent unnecessary price slippage and ensures a more orderly liquidation process.
  545

  137