Key Insights
- Long positions follow rising mark prices and short positions follow falling mark prices.
- Traders can choose either a fixed retracement or percentage threshold.
- The system triggers market execution after the selected reversal condition occurs.
Hyperliquid trailing stops now give perpetual futures traders an automated way to protect positions as prices move favorably. The exchange announced the feature on Sept. 21, adding a dynamic exit tool to its expanding derivatives infrastructure.
The new order type adjusts its trigger price as the mark price moves in a position’s favor. It then sends a market order after the mark price retraces by a distance or percentage selected by the trader.
See the Support Docs for more: https://t.co/gu0Aywrik8
— Hyperliquid (@HyperliquidX) September 21, 2026
New Order Logic Changes Stop Management
Hyperliquid trailing stops track the strongest mark price reached after activation. For a long position, the trigger follows the highest mark price as the market rises.
For a short position, the mechanism follows the lowest mark price after activation. The trigger then activates when the mark price rebounds by the selected threshold.
Traders can choose either a fixed distance or percentage for the retracement. They can also enter an activation price before the tracking mechanism starts.
Without an activation price, tracking begins immediately from the current mark price. Once the retracement condition occurs, Hyperliquid executes a market order for the selected position size.
The new system differs from a conventional fixed stop because the trigger can continue moving. That allows the exit level to adjust without requiring traders to manually change their orders.
Mark Price Remains Central to Execution
Hyperliquid uses its mark price for conditional order triggers, including its existing take-profit and stop-loss products. However, the trigger price does not guarantee the final execution price.
The exchange’s documentation warns that market conditions can create a difference between those prices. Liquidity and market movement can affect the price available when the triggered order reaches the market.
Existing market take-profit and stop-loss orders carry a 10% slippage tolerance. Limit versions instead allow traders to specify a limit price and manage potential execution slippage.
Hyperliquid already supports several order types across its perpetual markets. These include market, limit, stop market, stop limit, take market, take limit, scale and TWAP orders.
Its TWAP system splits larger orders into smaller transactions at 30-second intervals. Each suborder also operates under a maximum slippage setting.
HIP 3 Broadens the Perpetual Market
The trailing-stop launch follows several infrastructure changes that have expanded Hyperliquid’s perpetual markets. In September, the platform introduced a preliminary testnet upgrade for HIP 3 deployers.
The upgrade allows independent deployers to operate permissioned perpetual markets through onchain allowlists. Deployers can manage access directly or assign that responsibility to sub-deployers.
HIP 3 also allows outside teams to launch perpetual markets using Hyperliquid’s infrastructure. As a result, the framework has opened the platform to additional assets and market structures.
Meanwhile, Payward, the parent company of Kraken, has outlined plans involving regulated Hyperliquid perpetuals. The proposed structure would use CFTC-regulated Bitnomial for deployment, administration, clearing and settlement.
NinjaTrader Clearing would carry customer accounts under the proposed arrangement. Access would remain limited to users approved by the participating entities and regulatory framework.
Separately, Hyperliquid Policy Center and trade[XYZ] have pursued regulated commodity-linked perpetuals. Their August filing sought approval for contracts tied to WTI crude, Brent crude and Henry Hub natural gas.
Trading Growth Raises the Stakes
Hyperliquids derivatives expansion is happening at a time when trading activity stays strong across its ecosystem. In August Coinbase added than 290 perpetual markets to its Base App through Hyperliquid.
These markets include contracts tied to cryptocurrencies, stocks and commodities. Some of the supported products allow leverage high as 50 times. However users in the United States, the United Kingdom and Canada cannot access these products.
According to CoinGecko data published on September 21 Hyperliquid earned $429.04 million in revenue between January 1 and September 15. That amount made up 12.62% of the $3.40 billion revenue pool in CoinGecko’s adjusted comparison.
The platform also uses part of its trading revenue to support its Assistance Fund. This fund buys HYPE tokens on the market. It connects trading activity directly with growing demand for the token.
On September 21 HYPE traded near $94 following a record high of $92.56 on September 18. On the day September 18 Hyperliquid launched manual borrowing. This allows users to use HYPE or Bitcoin as collateral.
Under the borrowing system HYPE has a loan-to-value ratio of 65%. Bitcoin in comparison has a 50% loan-to-value ratio.
