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Market structure

Auto-deleveraging externalities

Profitable positions are reduced when the venue cannot absorb another account's deficit.

Reference note · Sources below

Research articles and reference entries are published in English. Navigation is available in seven languages.

In this article
  1. Overview
  2. Why it matters
  3. What to check
  4. Sources

Overview

Profitable positions are reduced when the venue cannot absorb another account's deficit.

Why it matters

A trader bears losses created elsewhere.

What to check

Read ranking and trigger rules; record mark, bankruptcy price and fund balance.

Sources

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