My TP/SL did not execute correctly

Description: You set a TP/SL and believe it was not executed correctly

Situation 1: My TP executed and made a loss although it was triggered at a profitable price.

• Take Profit (TP) and Stop Loss (SL) orders can be set as market or limit orders. TP/SL are triggered by mark price, and then executed. Trade price and mark price are different

• By default, market TP/SL orders have a 10% slippage tolerance, which means the execution price can deviate, especially for larger positions or illiquid tokens

• So even if your TP was triggered at a profitable price, the actual fill might have occurred at a worse price due to market conditions, such as low liquidity and/or sudden volatility, resulting in a loss

• To avoid this, you can:

  • Use limit TP/SL orders to specify the exact price you want

  • Break up large positions into smaller chunks to reduce slippage

  • Check the order book before placing orders to understand available liquidity

Situation 2: My TP/SL orders did not behave correctly, how do TP/SL for long and short positions work on Hyperliquid?

• You can read about TP/SL in the Docs here: https://hyperliquid.gitbook.io/hyperliquid-docs/trading/take-profit-and-stop-loss-orders-tp-sl

• Long positions

  • Stop-Loss (SL):

    • A SL order to close a long position with a trigger price of $10 and limit price of $10 will place a limit sell order at $10 once the mark price falls below $10

    • If the price drops sharply from $11 to $9, this order may rest at $10 without filling

    • If the limit price is set lower, say $8, the order has a better chance of filling somewhere between $9 and $8

  • Take-Profit (TP):

    • A TP order with a trigger price of $12 and limit price of $11.80 will place a limit sell order at $11.80 once the mark price rises above $12

    • This prevents the order from filling below $11.80 if the price pulls back after triggering

• Short positions

  • Stop-Loss (SL):

    • A SL order to close a short position with a trigger price of $11 and limit price of $11 will place a limit buy order at $11 when the mark price rises above $11

    • If the price spikes quickly from $10 to $12, this order may not fill

    • If the limit price is set higher, like $13, the order has a better chance of filling between $12 and $13

  • Take-Profit (TP):

    • A TP order with a trigger price of $9 and limit price of $9.20 will place a limit buy order at $9.20 once the mark price drops below $9

    • This ensures it won't fill at a worse price (above $9.20) if the price bounces back up after triggering

Situation 3: How do Stop Market orders work on Hyperliquid?

• A Stop Market order is triggered when the price reaches the selected stop price.

• Entering a Long Position

  • Stop Price: The price at which you want to trigger your buy order (above current market price)

  • Used when: You want to place a long only if the price is higher than the current price

• Entering a Short Position

  • Stop Price: The price at which you want to trigger your sell order (below current market price)

  • Used when: You want to place a short only if the price is lower than the current price

Situation 4: How do Stop Limit orders work on Hyperliquid?

• A Stop-Limit Order is a conditional order that combines a stop (trigger) price and a limit price. When the stop price is hit, a limit order is placed on the order book. That limit order only executes if it can be filled at or better than your limit price

• Entering a Long Position (Buy Stop Limit):

  • Stop Price: The price at which you want to trigger your buy order (above current market price)

  • Limit Price: The max price you're willing to pay (typically lower than the stop price, otherwise orders will likely fill immediately upon triggering)

  • Used when: You want to place a long only if the price is higher than the current price, but want to set a limit price (not willing to buy higher than $x)

• Entering a Short position (Sell Stop Limit)

  • Stop Price: The price at which you want to trigger your sell order (below current market price)

  • Limit Price: The lowest price you're willing to sell at (typically higher than the stop price, otherwise orders will likely fill immediately upon triggering)

  • Used when: You want to place a short only if the price is lower than the current price, but want to set a limit price (not willing to sell lower than $x)

Explore different order types here: https://hyperliquid.gitbook.io/hyperliquid-docs/trading/order-types