Official references: Hyperliquid order types and TP/SL behavior. Checked July 15, 2026.
Journey: Hyperliquid guide hub. Next: calculate position size before placing the stop.
Safest no-code method: move a reduce-only stop
- Open the position and decide the maximum dollar loss before sizing it.
- Place a position-associated stop loss. Hyperliquid says position TP/SL is the beginner-friendly form and uses mark price as the trigger.
- Confirm the close size and that the order reduces the position rather than opening exposure in the opposite direction.
- As price moves in your favor, cancel or edit the old stop and replace it at the new trigger.
- Never loosen the stop merely because price moves against the trade.
- Recheck the open-orders list after every change. The old stop must be gone and the new stop must cover the intended position size.
Stop market or stop limit?
- Stop market prioritizes exiting after the mark-price trigger. The official docs state TP/SL market orders use a 10% slippage tolerance, so the final fill can differ during fast markets.
- Stop limit lets you control the worst acceptable limit price, but it can trigger and remain unfilled if price gaps through that limit.
API method: cancel and replace
An automated trailing stop follows a simple state machine:
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- Read the authoritative position and open-order state.
- Track a high-water mark for a long or a low-water mark for a short.
- Calculate a new trigger only when the market moves far enough to justify an update.
- Cancel the previous stop.
- Verify cancellation, then place the replacement reduce-only stop.
- Reconcile again after reconnects or timeouts.
Common failure modes
- Calling TP/SL “trailing.” A fixed TP/SL does not follow price.
- Leaving the previous stop live. Two exits can create unexpected behavior as size changes.
- Wrong trigger source. Hyperliquid TP/SL uses mark price, not necessarily the last trade shown on a chart.
- Fixed-size child order after a partial fill. The official TP/SL docs explain that child orders tied to a parent can retain fixed sizing and have cancellation edge cases.
- Stop-limit gap risk. A triggered limit order can rest without filling.
- No restart reconciliation. Local bot state can disagree with the clearinghouse after a disconnect.
A controlled first test
Use the smallest position the market supports. Place a fixed reduce-only stop, move it once, verify the old order is canceled, and close the position. Only then test automation. A trailing stop manages exits; it does not make leverage safe and cannot guarantee a fill.
Next step: size the position from your maximum acceptable loss, then review cross versus isolated margin.
Risk warning: Perpetuals can liquidate rapidly. Stop orders can slip or fail to fill at a chosen limit. This is operational education, not financial advice.