#BAN Why would it be automatically reduce position? why? Can you give an explanation?

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LittleKnowledgevip
· 2025-02-24 06:39
Dear user, when a forced Close Position occurs, if the Position cannot be closed at a price better than the Liquidation price, and the balance of the insurance fund is not sufficient to cover the margin shortfall of bankrupt position, the automatic reduce position (ADL) system will select the trader with the highest yield among those holding the opposite Position for reduce position. If you want to avoid being automatically reduce position, you can lower the leverage, drop the yield, to drop the ADL ranking.
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God-LevelCatchervip
· 2025-02-24 06:09
Without a counterparty, the principle of a contract is gambling. When you open a 0.2 short position, someone else needs to open a 0.2 long position for the contract to be established. Otherwise, you will be given Close Position. If you make a profit, no one will pay you. That's why small-scale contracts are not playable.
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