How Trigger Prices and Limit Prices Affect TP/SL Fills
Summary
The document explains why take-profit and stop-loss orders can fill at prices different from their trigger prices. Hyperliquid triggers these orders using mark price, while trades execute at market prices; for market TP/SL orders, the stated default slippage tolerance is 10%. Thin liquidity, large positions, or sudden volatility can therefore turn a seemingly profitable trigger into a losing fill.
It compares market and limit TP/SL behavior for long and short positions. A limit order controls the worst acceptable fill price, but may remain unfilled if the market moves past it. Setting a more aggressive limit can improve the chance of execution while accepting a less favorable price. The document also describes stop-market and stop-limit orders for opening positions, including how stop prices and limit prices are placed relative to the current market. These are practical order mechanics, not a tested trading strategy; actual execution depends on market conditions and order-book liquidity.
Key ideas
- TP/SL orders trigger from mark price, which can differ from the price at which a trade executes.
- Market TP/SL orders can experience slippage, especially in volatile or illiquid conditions.
- A limit TP/SL order constrains the acceptable execution price but may not fill after a sharp price move.
- For stop-limit orders, triggering places a limit order on the book, where execution depends on available prices.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.