Source: https://mochatrade.com/learn/glossary/auto-deleveraging

# Auto-deleveraging (ADL)
URL: https://mochatrade.com/learn/glossary/auto-deleveraging
Last modified: 2026-10-17

Auto-deleveraging is the last step when a liquidated position's loss exceeds its margin and the insurance pool: the venue closes part of the most profitable opposing positions to cover it. It can shut a correct trade; [where the loss goes](https://mochatrade.com/learn) is a Module 3 question, and [the liquidation page](https://mochatrade.com/support/how-leverage-and-margin-work-on-mochatrade) says what Mochatrade does.

## Related terms

- Insurance fund: https://mochatrade.com/learn/glossary/insurance-fund
- Liquidation price: https://mochatrade.com/learn/glossary/liquidation-price
- Mark price: https://mochatrade.com/learn/glossary/mark-price
- Isolated margin: https://mochatrade.com/learn/glossary/isolated-margin
- Negative balance protection: https://mochatrade.com/learn/glossary/negative-balance-protection
- Liquidation / forced square-off: https://mochatrade.com/learn/glossary/liquidation-forced-square-off

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.