When traders are forced to liquidate their positions, their remaining positions will be taken over by DC's liquidation system. If there is no balance in the insurance fund and the forced liquidation position fails to be liquidated in the market at a better price than the bankruptcy price, the automatic deleveraging system will deleverage the position of the trader holding the position in the opposite direction. The sequence of deleveraging positions will be determined based on leverage and profit ratio.
Sorting Formulas:
The priority of deleveraging is calculated by profit and leverage. Traders with high returns and high leverage will give priority to deleveraging.
Sorting = profit percentage * effective leverage (if profitable)
Sorting = profit percentage/effective leverage (if loss)
Effective leverage = abs (marked value) / (marked value-bankruptcy value)
Profit percentage = (mark value-average opening value)/abs (average opening value)
Mark value = position value at the marked price
Bankruptcy value = position value at bankruptcy price
Average opening value = position value at the average opening price
Comments
0 comments
Article is closed for comments.