Take Profit and Stop Loss
A take-profit or stop-loss order activates when its selected price reference reaches the trigger. Set the trigger price, execution type, quantity, and reduce-only instruction together.
Example: Protect a 1 BTC Long
Section titled “Example: Protect a 1 BTC Long”Assume entry at 77,000 USDT. The following levels illustrate the order mechanics, not a trading recommendation.
| Exit | Trigger | Instruction |
|---|---|---|
| Take profit | Price reaches 80,000 USDT | Reduce the long position with a sell exit |
| Stop loss | Price reaches or falls below 73,000 USDT | Reduce the long position with a sell exit |
For a short position, a buy take-profit is below entry and a buy stop-loss is above entry. Check the remaining position quantity before sizing either exit.
Select the Price Reference
Section titled “Select the Price Reference”| Reference | What It Tracks |
|---|---|
| Last price | The exchange’s latest trade |
| Mark price | The exchange’s valuation reference, commonly used for margin calculations |
| Index price | The exchange’s reference derived from underlying markets |
Record both the source and the exchange. A Hyperliquid mark-price trigger follows Hyperliquid’s mark, even if another exchange last traded at a different price.
Stop-Market or Stop-Limit
Section titled “Stop-Market or Stop-Limit”- Stop-market: a 73,000 trigger starts market execution. If the next available bid is 72,950, some or all of the exit can fill below the trigger.
- Stop-limit: a 73,000 trigger with a 72,900 sell limit allows fills at 72,900 or higher. A market gap below 72,900 can leave the order open and the position exposed.
The Hyperliquid stop example shows trigger source, exchange, quantity, and reduce-only fields.
Keep Exit Quantities Current
Section titled “Keep Exit Quantities Current”If 0.4 BTC of a 1 BTC position closes, reconcile the remaining 0.6 BTC before updating exits. Use reduce-only where supported, and verify whether paired take-profit and stop-loss orders cancel one another. Independent exits require their own cancellation and quantity management.
Liquidation can occur before an exit fills, particularly when the liquidation and trigger price references differ. Check margin headroom as well as the stop level.