What is the ADL ranking system on Bybit and how does it affect cryptocurrency trading?

3 answers

• Prasenjit DasJun 16, 2023 · 2 years ago
  The ADL ranking system on Bybit is a mechanism designed to prevent traders from being liquidated. ADL stands for Auto-Deleveraging, and it is a risk management tool used by Bybit to ensure the stability of the platform. When a trader's position is liquidated, the ADL system automatically deleverages the position by transferring the remaining risk to the opposing side of the trade. This helps to maintain the integrity of the trading system and protect traders from excessive losses.
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• Good AdkinsOct 28, 2023 · 2 years ago
  The ADL ranking system on Bybit is an important feature that traders should be aware of. It helps to maintain the overall stability of the platform by preventing the market from being overwhelmed by liquidations. When a trader's position is liquidated, the ADL system steps in to distribute the remaining risk among other traders with opposing positions. This ensures that the market remains balanced and prevents extreme price movements. So, while the ADL system may have an impact on individual traders, it ultimately benefits the entire trading community.
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• Amarnath RoutMar 10, 2021 · 4 years ago
  Bybit's ADL ranking system is an innovative approach to risk management in cryptocurrency trading. When a trader's position is liquidated, the ADL system automatically transfers the remaining risk to the opposing side of the trade. This helps to maintain the stability of the platform and ensures that traders are not exposed to excessive losses. Bybit's ADL system is just one example of how exchanges are implementing advanced risk management tools to protect traders and create a more secure trading environment.
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